Prior to its opening, children had been housed at Turana Youth Training Centre in Parkville.

Overcrowding decreased as alternative reception and care programs were implemented by the Department.

During the 1970s, changes in the structure of state-run facilities, including regionalisation of services, reduced the need for large-scale centralised reception centre like Allambie.

A review in 1985 recommended the closure of Allambie, and the redirection of funding to regional reception centres.

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