The former Dunedin man was convicted in 1995 of murdering his family, parents Robin and Margaret and siblings Arawa, Laniet and Stephen, and spent 13 years in jail before he was acquitted in a 2009 retrial.
Friends of David Bain spokeswoman Catherine Spencer said, while she had not seen a copy of the report, "it seems like it is a step in the right direction and indicates what the jury said three years ago".
Acknowledgement by the Government and compensation would help "address faith in our public institutions".
"Whereas, if you keep on denying that, people feel even more insecure and let down by those institutions."
Ms Spencer spoke to Mr Bain last week, but the issue of compensation was not discussed, as "we have learnt over the years to wait and see what decision will be made".
"We think he absolutely deserves it ... it has been a long time coming, but the vagaries of the system don't necessarily guarantee anything. I do think this is an opportunity for the Government to do what they can, because you can't turn the clock back."
While it was inappropriate to discuss the appropriate level of compensation, it was appropriate he was awarded for the "absolute trauma that [he] has been though".
Robin Bain's brother, Michael, said he would not comment until he had seen the report from Justice Ian Binnie.
He confirmed he would not be contacting Justice Minister Judith Collins for an advanced release of the report.
Margaret Cullen-Bain's brother-in-law Bob Clark, of Dunedin, declined to comment about the report - "that is all hearsay at the moment, isn't it".
Dunedin police management also declined to comment, referring inquiries to the Ministry of Justice.
"The ministry is not able to comment on any aspects of Justice Binnie's deliberations," a spokesman said.
