In the 1980s, separation of children from their families and communities came to be considered not only as undesirable, but also as counterproductive.
Further regionalisation of reception functions occurred, including the establishment of the Western Suburbs Reception Centre and other smaller centres.
The 1985 Statewide Services Redevelopment (SRD) plan focussed on keeping the child or young person in their own region or community by placing them with families whilst court decisions were being made, rather than placing them in one of four metropolitan reception centres. SRD involved utilising resources from central institutions to develop local services and funding was redirected to regional areas.

Alternative care programs such as reception foster care, and new preventive and support services had reduced Allambie’s capacity issues. Capacity was reduced to about 100 children in the following sections:
Acacia, Correa and Banksia – admitting sections
Heath/Cassia – babies and toddlers
Carinya – sibling groups and adolescents
Lodge – sibling groups
Kurrajong – mixed groups
Waratah – mixed groups and children with special needs.

Average weekly intake drops to 10 – overall capacity is reduced to 100

By 1985, the focus was on keeping young people in their own regions or communities and placing those awaiting court decisions with families.

• PROV, VPRS 9898/P0001 School Records, Principals Reports. (1971-1982),Unit 1