Overcrowding became a significant issue by the mid 70’s, exact figures are hard to find but there are reports of up to 320 children competing for the centres 220 beds and the creation of makeshift dormitories 

During the 1970s, to reduce overcrowding and children’s stay lengths, the government opened a number of approved children’s homes, and introduced alternative programs such as regionalised foster care.
Services were also regionalised, including reception care and regional case planning, to reduce the need for a large metropolitan reception centre. 

A letter to the newspaper mentioned: 
‘Though Allambie is called a reception centre only, it is fast becoming a permanent holding place for children, though not planned or geared to that role. The staff has to cope not only with numbers beyond their abilities and facilities, but with many children – eg the mentally retarded and emotionally disturbed – who should be having special care for their individual problems.’

• ‘The Canberra Times’, 24 Jan 1972.

Much of the language historically used to describe institutional ‘care’ and the children and adults impacted by it is considered offensive, derogatory and inappropriate today.
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