Sydney, Aug 30 (DPA) Australia plans to apologise to thousands of British children admitted to orphanages where brutality and sexual abuse were everyday occurrences, a cabinet minister said Sunday.

'This is a significant national step in the healing process for forgotten Australians and former child migrants,' Families Minister Jenny Macklin said.

As many as 10,000 poor children that Britain didn't want were sent out to Australia between 1947-67. Often falsely labelled orphans and treated abominably when they arrived on ships, they became known collectively as the Orphans of the Empire.

Also covered by the apology, expected to be made in parliament later in the year, will be the thousands of local children who also suffered abuse and neglect when they were placed in government institutions or foster homes.

Macklin ruled out a compensation scheme for affected children.

A government report five years ago estimated that 500,000 children had been placed in orphanages or foster homes because they were born to single mothers or into poor families.