The New South Wales Government says it will set up a fund to repay wages and other money paid into trusts for Aboriginal people that was not passed on to them.

Last year a leaked government report estimated 11,000 Aboriginal people could be owed up to $70 million in lost money paid into trusts between 1900 and 1970.

There was concern the money had been stolen by public servants or employers, so the Government appointed a panel to set up a scheme that was workable.

It now says 3,500 thousand people are owed money at an estimated cost of $15 million.

Community services minister Carmel Tebbutt has today committed the Government to paying.

The Minister says descendants of people owed money will also be able to lodge claims.