Dion Barber, 45, sued the state of Western Australia for the "extraordinary" abuse he suffered in the 1980s and 1990s.
He was awarded $2.85 million in the WA District Court on Tuesday, the largest award of damages made to a child sexual abuse survivor in the state.
It also marked the first historical sexual abuse case against the state of WA to proceed to a judgment since a 2017 royal commission into child sexual abuse removed time limits for survivors to bring claims.
Mr Barber was eight years old when he reported sexual abuse by his stepfather to his mother and authorities, his lawyers Maurice Blackburn said.
The Department of Community Services (now Department of Communities) and the Children's Court confirmed he was abused, and he was placed under the guardianship and care of the Welfare Department.
Over the following months, he was forced to have counselling with his stepfather before he was sent back into the home, where he was raped and abused by the same perpetrator.
"The treatment of Dion is the worst I've seen," Maurice Blackburn lawyer Hugo Seymour told reporters outside court.
"The sheer negligence in this case was extraordinary.
"The decision to send him back to his abuser, knowingly, to force him into counselling with his abuser, to then place him with his alcoholic, clearly unsafe, violent father, and to let the wardship lapse was extraordinary, inexplicable."
Mr Barber launched the legal case in 2021 for the repeat abuse and harm caused by his stepfather as well as other perpetrators over subsequent years while in care.
A trial was held earlier in the year before Judge Linda Black, who described Mr Barber as a "completely credible witness in every respect" when she handed down her judgment.
Mr Barber said he was happy with the result, but there was more work to be done.
"I'm still going to fight because I want change in the system so this doesn't continue happening," he said.
"I would like an apology (from the department) but it doesn't mean anything to me because unless there's change, it don't mean nothing."
Judge Black's comment about his evidence was also significant, he said.
"You always get put down as being a liar all your life and to have that come through by a judge and actually say you're believed, it's massive," he said.
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