The Board was established by the State Cabinet, following the Welfare and Community Services Review of 1984. The Board was intended to "open Government welfare to greater community scrutiny, improve accountability and bring [outside] expertise and status to the Department for Community Service's Welfare operations". In short, the Board was established to serve as a link between the Department and the community. The Board consisted of representatives of the welfare profession, country groups, local community groups, and Department staff. A representative from the Department's constituency [i.e. a welfare receipient] was also included. The Board's first meeting was held in Perth on 16 November 1984 and subsequent meetings were held in different regions of the State.

Since its inauguration, the Board focused on four main issues:
1. Improving welfare services to Aboriginal people.
2. Alleviating poverty-related stress in target groups.
3. Promoting co-operation between Government and private welfare agencies.
4. Allocating Government funds (raised by the State Lotteries Commission) to non-governmental welfare organizations.

Generally, this policy-making Board also advised the Government on anti-poverty Strategies.