The $3.8 billion national redress scheme for child sexual abuse passed federal parliament on Tuesday, allowing victims to claim up to $150,000 in compensation.

Mr Tehan, who played a key role in establishing the scheme as Social Services Minister, celebrated by making good on his pledge to Leonie Sheedy, the chief executive of Care Leavers Australasia Network (CLAN).

CLAN represents, supports and advocates for people who were raised in Australian and New Zealand orphanages, children's homes and foster care.

The group has been highly visible during the Royal Commission into Institutional Responses to Child Sexual Abuse and the negotiations over the national redress scheme.

In a video posted to social media soon after the legislation passed, Mr Tehan appeared in his office with a pair of scissors placed over his tie.

“As part of the process (of establishing the redress scheme) the Prime Minister met with survivors at Kirribilli house earlier in the year,” Mr Tehan said.

“Leonie Sheedy, head of CLAN, asked me to cut my tie in half and sign it on that day as a mark of its importance.

“I said to Leonie that I would wait ‘til federal parliament had actually passed the national redress scheme, then I would cut my tie in half and send it to her.”

Mr Tehan proceeded to cut his blue tie in half on video.

“Leonie, you have been an absolute inspiration in the way you have fought for this redress scheme,” he said.

“I commend you for it and I praise you for the work that you have done.”

A new national office for child safety will also be established within the Department of Social Services, which falls within Mr Tehan’s ministerial portfolio.

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