Scott Austic was acquitted of murder in 2020 after having spent almost 13 years behind bars in Western Australia.
Mr Austic had been convicted of killing 34-year-old Stacey Thorne, who was pregnant with his baby, at her Boddington home in 2007.
Attorney-General John Quigley in 2018 granted Mr Austic a second appeal against his conviction amid concerns that police may have planted evidence. A previous bid had been rejected by the former state Liberal government.
The challenge was successful and a Supreme Court jury found Mr Austic not guilty of Ms Thorne's murder after a three-week retrial.
Mr Quigley on Wednesday said investigations by the Corruption and Crime Commission had found there was no wrongdoing by police or prosecutors.
He told parliament the government had granted Mr Austic compensation of $1.3 million, on top of a previous payment of $250,000.
Mr Austic had been seeking an $8.5m ex-gratia payment, according to the attorney-general.
Mr Quigley said his reasons for granting compensation were informed by extensive legal advice and would be tabled in parliament.
He extended his condolences to the family of Ms Thorne, describing her as a much-loved and cherished member of the community.
State parliament last year passed new laws granting further appeal rights to individuals convicted of serious crimes when fresh and compelling evidence emerged.
They previously had no further right to appeal even if new evidence arose that could potentially exonerate them or demonstrate a substantial miscarriage of justice had occurred.
Instead, as was the case for Mr Austic, they were forced to ask the attorney-general to refer the case to the Court of Appeal, or petition the governor for mercy.
The new laws enable such cases to be presented directly to the Court of Appeal instead of being considered by the attorney-general of the day.
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