A pilot program or programs should be established to reintroduce restitution in Australia in a formalized way, rather than leaving the issue of restitution to chance, as is currently the case. Magistrates and judges should be required to consider at the outset whether an offender would be better placed in a community program than in prison, and a demonstrated desire to repay the victim should have some influence on final disposition. Restitution should not become another mechanism for imposing coercive measures on the offender, but should be viewed as an equitable way of having offenders redress their crimes without incarceration. If the offense warrants more than restitution, a restitution order could be awarded in conjunction with another order or penalty. Sentences of imprisonment should be capable of being deferred or suspended while a restitution program is negotiated, and if the program is properly concluded, the prison term should lapse. Where an offender does not have sufficient funds to make complete restitution, a partial restitution order could be combined with an order for 'symbolic restitution' consisting of community work agreed upon as canceling the damage caused by the offense. Full and adequate funding should be made available for the pilot program so that it may be given full opportunity to operate effectively and be evaluated. Thorough training of personnel, particularly those who are to act as mediators/negotiators in the program, should be undertaken. Restitution programs should not be viewed as a replacement for victim compensation schemes or victim/witness assistance programs. Supplementary material is appended, and footnotes and an extensive bibliography are provided. (Author abstract modified)