Tasmania may become the first state or territory in Australia to introduce a financial compensation scheme for people convicted of the past criminal offences of homosexuality and "cross-dressing".

A bill passed Tasmania's lower house this week to amend laws that expunge, or remove from the record, these criminal convictions.

It also included the introduction of a financial redress scheme for those affected, the first of its kind in Australia.

The redress scheme was added to the bill by the Tasmanian Greens before it passed the lower house, with an upper house vote still to come.

Equality Tasmania campaigner Rodney Croome said it was an important step, as those who were convicted faced a range of consequences.

"It's only just that they should have the option of financial redress from the state that caused them so much trauma."

Tasmania decriminalised homosexuality in 1997, the last Australian state or territory to do so, and was the only state to criminalise "cross-dressing", which was decriminalised in 2001.

In 2017, the Tasmanian government apologised for the criminalisation of homosexuality and passed legislation for the expungement of historical offences.

The government looked to amend these laws this year following an independent review in 2020, to expand the definition of crimes to include resisting arrest, assaulting police or obstructing police while being apprehended for homosexuality or cross-dressing.

The laws also make expungement applications exempt from right to information laws and improve record disposal practices.

Greens move to introduce redress scheme

The bill was debated in the lower house on Wednesday night, when Greens leader Rosalie Woodruff introduced the redress scheme amendment.

It passed "on the voices", without a recorded vote.

Dr Woodruff said Tasmania had moved from being the worst in the country, to a nation-leader, on reforms for LGBTIQA-plus people.

"There has been a missing piece," she said.

Dr Woodruff said the amendment had strong support across the parliament, although the government did not originally intend to introduce the redress scheme.

"The government didn't go to a vote. They didn't vote against the amendment, but it wasn't what the government wanted to do," she said.

"The balance of power situation in the parliament, the flexibility that we've got meant that the majority of people in the house won the day."

The government has previously argued that the current process was more appropriate than a redress scheme.

When asked how the proposed redress process would work, a government spokesperson said "further work" will occur once the bill passed both houses of parliament.

The government's media release highlighting the bill's passage through the lower house did not include explicit mention of the redress scheme.

Hopes law change will gather momentum

Mr Croome estimates there are 100 people with historical convictions alive in Tasmania today that will be eligible to receive redress.

He says few applications for expungement have been received since 2017, however it is hoped that the introduction of redress will encourage more to apply.

"The money won't be enough to heal the trauma that they experienced, but it will at least show them that Tasmania is sorry," Mr Croome said.

It is also hoped the scheme will set a precedent for the rest of the country.

"It's not just Tasmanians who deserve this redress. It's LGBTQIA-plus people across the nation who are persecuted under those old laws in every state and territory who deserve financial reparation for the trauma and suffering that they experienced," Mr Croome said.