The Mental Health Act Amendment Act 1976 (032 of 1976) created the ability for the government to license, fund and regulate ‘private psychiatric hostels’, ‘approved private hostels’, ‘day activity centres’ and ‘sheltered workshops’. The amendments imposed stricter conditions on voluntary organisations but also stimulated the growth of hostels for people with intellectual disabilities.
Private hostel is a term that was first defined in the Mental Health Act Amendment Act 1976 (s.26A). The term meant a hostel or similar place that provided residential accommodation for people with intellectual disabilities which was not operated by or on behalf of the Western Australian or Commonwealth government. Private hostels were licensed by the Minister for Health and could be funded and regulated by government.