Members of a successful class action for Indigenous people impacted by toxic chemicals on their cultural lands are at odds over how to divide the multimillion-dollar payout.

The commonwealth government in May agreed to pay $22 million to people living in Wreck Bay, on the NSW south coast, after firefighting foam containing toxic chemicals leaked into sacred waterways.

The settlement of the civil action, brought by the Wreck Bay Aboriginal Community Council, was approved by the Federal Court, including an estimated $16.5 million going to Indigenous people whose cultural use of the polluted lands was affected.

On Friday, counsel for the class action, William Edwards SC, said there were several categories of objections from group members about the distribution of the settlement, including whether minors were eligible.

The view of an independent court-appointed referee, who travelled to the community, was to exclude children because the y had not felt the impact of cultural loss as much as adults, the court heard.

"It's been a controversial subject within the community," Mr Edwards said.

The court heard around 104 young people would miss out on money from the settlement if the referee's view was adopted.

There was a buffer in the settlement that could be absorbed if minors were included in the distribution scheme.

The court was told there were a "plurality" of views on how to share the funds among the class action group, which represented people living near the HMAS Creswell and Jervis Bay Range Facility and those using the land for traditional or cultural purposes.

It was brought solely seeking damages over decreased use of the land and does not also include compensation for personal injuries from the PFAS group of chemicals.

The so-called "forever chemicals", which accumulate in the body and do not naturally degrade, are linked to cancers, birth defects and diseases.

About 1000 Wreck Bay residents or land users were expected to be eligible for the settlement.

Sam McKeith - AAP