Department costs stillborn support payment

The federal government is looking at ways it could support parents of stillborn babies, including bereavement payments.

A Senate inquiry into Australia's stubborn stillbirth problem last year made 16 recommendations to the government, such as extra funding and developing a national action plan to drive down deaths.

Asked if the government would consider bereavement payments for parents of stillborn babies, Social Services Minister Anne Ruston confirmed her department was looking at it.

The minister says she is "very keen" for progress to occur.

"I am absolutely sympathetic to the issue," Senator Ruston said during Senate estimates on Thursday.

"I have requested some significant work to be done on it and there is some ongoing work being done on it, on a range of different measures that may be considered."

Labor's health spokesman Chris Bowen has previously labelled it a terrible injustice that parents of stillborn babies are being denied a bereavement payment.