ABC News said the plan is among the recommendations of the 2020 "Brereton Report," which found Australian Defense Force personnel were involved in serious crimes, including the "murder" of 39 prisoners and civilians from 2005 - 2016.
A Defense Department spokesperson said the government was committed to implementing the "Brereton Report" recommendations, which include compensation, "to the fullest extent possible."
The spokesperson added that the Afghanistan Investigation Compensation Plan has been created and compensation will be paid to those who are identified as victims of war crimes or their families.
Australia had about 400 troops in Afghanistan as part of peacekeeping efforts with the US and other allies.
More than 39,000 Australian soldiers served in Afghanistan for 20 years. Australia withdrew from the country in 2021.