Reconciliation is the dominant discourse surrounding Australia's response to historical injustices Aborigines have suffered. However, debate persists about what the concept means and how effective it is when addressing past harms. It is particularly criticised for focusing on symbolic and social justice measures, rather than material reparations enshrined in law. This article examines the case study of Tasmania, which has been the only jurisdiction to compensate the Stolen Generations. It questions why there was an understanding of reconciliation as reparations at the state but not at the national level. Drawing on interviews with Tasmanian political and Aboriginal leaders, this investigation found that a shared discourse of reconciliation created a space where a momentum of community support grew for legal redress. Alongside this analysis, the article argues that studies on reconciliation should go beyond the nation to examine how these debates play out in state legislatures.