Maree Atkinson, 44, had earlier pleaded guilty to arson, having set a couch in her Echuca unit alight in June 2019 after receiving an eviction notice.

The Njernda Aboriginal Corporation unit "erupted in flames" and had to be demolished at a cost of $230,000, but Atkinson and her 24-year-old daughter escaped unharmed.

The Yorta Yorta woman was later cooperative with police and made a full admission of the offence.

Atkinson, who had been on remand for 177 days, faced Judge Irene Lawson on Thursday at the County Koori Court, where she was handed a one-year community corrections order on top of her time already served in custody.

"I'm going to change my life," Atkinson told the court.

Judge Lawson said arson was "inherently serious" and Atkinson's offence was aggravated by the fact her daughter was inside the unit when she set her couch on fire.

She said Atkinson had breached the trust of the cooperative and potentially deprived another person in need of housing.

"I don't excuse your behaviour and I must condemn it on behalf of the community," Judge Lawson told the court.

But she also said no accelerant was used and that the arson, committed while Atkinson was struggling with mental health issues and alcohol abuse, was not motivated by financial greed or personal gain.

Judge Lawson said the Indigenous woman's moral culpability was reduced by the fact she suffered from both intergenerational trauma and domestic violence at the hands of intimate partners, which resulted in an acquired brain injury.

Atkinson had also demonstrated appropriate remorse and was "ashamed" of the offending.

"You have experienced a life of profound disadvantage and trauma," Judge Lawson said.

"But this whole exercise has demonstrated to me you are capable of reaching out for and accepting help. I hope for your sake and all your family things do pick up for you and that your future is brighter."

Australian Associated Press