Legislation introduced on Tuesday will create integrated birth certificates, allowing the names of an adopted person's birth parents, adoptive parents and the date of their adoption to be included on their certificate.
Under current law, only adoptive parents are listed on certificates.
The change will enable adopted people aged 18 years and older who wish to update their records to access a certificate that better represents their own story.
It follows through on a recommendation made by the Parliamentary Inquiry into Historical Forced Adoption in Victoria.
The Victorian Registry of Birth, Deaths and Marriages will begin work to develop integrated certificates, which are expected to be available by late 2023.
Attorney-General Jaclyn Symes said the state government's response fully acknowledges this "shameful" part of Victoria's history.
"This is a meaningful change we can start to make right now to help people who were adopted to tell their stories," she said in a statement.
"We know we can't change the past but we can try repair the damage caused."
In March, adoptee Penny Mackieson was allowed by the Victorian County Court to correct her records and integrate her Greek birth mother's name with the one given to her by her adoptive parents.
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