David Bain could be in line for more than $1 million in compensation if the Government accepts his claim for wrongful conviction and imprisonment.
Mr Bain was convicted in 1995 of murdering his mother, father and three siblings in Dunedin when he was 22, but in 2007 the Privy Council quashed his convictions and he was found not guilty at a retrial last year.
He formally lodged a compensation claim on Thursday.
There is no automatic right of compensation for wrongful imprisonment, but the Government can make payments at its discretion.
To qualify, the Government will have to be satisfied that on the balance of probabilities David Bain is innocent.
Mr Bain spent almost 13 years in prison, before the Privy Council quashed his conviction.
Cabinet guidelines suggest compensation for non-pecuniary losses, such as of liberty, should be based on a starting figure of $100,000 for each year in custody.
Mr Bain's compensation claim will initially be assessed by the Ministry of Justice.
Justice Minister Simon Power says he will wait for the results of the ministry's process.
The Justice for Robin Bain Group says it doesn't believe David Bain should get compensation.
Spokesperson Kent Parker says the group has more than 1300 signatures on its petition opposing compensation, and Thursday's announcement might lead to more signatures.
Mr Parker says there has been particular pressure from Mr Bain's supporter, Joe Karam, for compensation.
Lawyer Gary Gottleib, who won compensation for three women wrongly jailed for a 1999 assault, says if David Bain convictions had been quashed without a retrial being ordered he might have had a better chance of being compensated.
