A historic breastplate belonging to a respected Jerrinja Ancestor has returned to the New South Wales South Coast after resurfacing at a Melbourne auction nearly a century after it was last seen.

The brass breastplate belonged to Queen Mary Carpenter, a prominent and influential member of the Jerrinja Aboriginal Community who, alongside her husband James Golding — also known as 'Billy Budd II, King of Jarvis Bay' — played an important role in community life in Huskisson.

The breastplate's location had remained unknown since Queen Mary's death before it was recently identified among items listed for auction in Melbourne.

Its return to Country was celebrated at a ceremony held at the Jervis Bay Maritime Museum last week, with support from the Australian Government's National Cultural Heritage Account helping secure its return.

Minister for Indigenous Australians, Malarndirri McCarthy, said the repatriation carried special significance for the community.

"Almost a century after the passing of its owner, this breastplate is returning to Saltwater Country on the New South Wales South Coast," she said.

"Breastplates like these can evoke mixed feelings but every repatriation of a cultural and heritage item is an important return to Country and communities."

The Jerrinja Aboriginal Community has chosen to place the breastplate in the care of the Jervis Bay Maritime Museum, where it will remain on Country while being preserved for future generations.

Museum director Diana Lorentz said the return marked an important moment of cultural reconnection.

"The rediscovery of the breastplate, and its return to the communities in Huskisson, is an important act of cultural reconnection, and we are thrilled that it is coming back to Country," she said.

The museum also houses a replica breastplate belonging to King Budd Billy II, while the original remains in the collection of the National Museum of Australia in Canberra.

Breastplates were typically made from brass, copper or bronze and worn around the neck. During the colonial era, they were often presented to respected Aboriginal people as symbols of recognition by government officials and settlers.

Arts Minister Tony Burke said the National Cultural Heritage Account helped ensure significant cultural items remained connected to the communities they belong to.

"The National Cultural Heritage Account exists so important pieces of cultural heritage are protected," he said.

"We know how important it is to keep these objects on Country close to their communities."