Lawyers for both sides agreed to settle the case prior to an eight-day hearing, which was due to begin in the Federal Court in Sydney.
At a short hearing on June 26 morning, the terms of that settlement were approved by Justice Nye Perram. The barrister representing the families described the payout figure as "reasonable".
The settlement came ahead of next month's fifth anniversary of the downing of MH17.
The Boeing 777 was travelling from Amsterdam to Kuala Lumpur when it was shot by a surface-to-air missile. All the 298 people on board the aircraft died in the crash, including 38 Australian citizens or residents.
