Kathleen Folbigg has been offered only A$2 million (approximately $1.3 million) as compensation for her wrongful imprisonment of 20 years, a figure her legal representative has called "woefully inadequate." Once portrayed as "Australia's worst mother" due to the convictions surrounding the deaths of her four babies, Folbigg's case has now been recognized as a major miscarriage of justice after new evidence surfaced suggesting her children may have died from genetic conditions rather than foul play.

Initially convicted in 2003 for the deaths of her children, Ms. Folbigg spent two decades behind bars before being exonerated in 2023 following a judicial review. This review indicated that her children—Caleb, Patrick, Sarah, and Laura—who died between 1989 and 1999—could have succumbed to natural causes. Her trial relied heavily on circumstantial evidence and personal diary entries, which prosecutors used to portray her as an unstable individual.

Legal experts had anticipated a compensation sum much higher than the offered A$2 million, possibly exceeding A$10 million, considering the severity of her wrongful imprisonment. Folbigg's attorney, Rhanee Rego, criticized the government's decision, calling it "profoundly unfair and unjust." The New South Wales Attorney General, Michael Daley, defended the compensation decision as being based on careful consideration. However, Ms. Rego argued that the paltry sum failed to address the depth of Folbigg's suffering, especially in comparison to similar cases.

Folbigg’s plight has drawn comparisons to that of Lindy Chamberlain, who received A$1.7 million after being wrongfully imprisoned for three years following the death of her child. Experts have indicated that Folbigg's compensatory damages could reach as high as A$20 million based on her lengthy ordeal and the public sentiment surrounding her case.