The Aborigines Welfare Board was created in 1940, under the Aborigines Protection (Amendment) Act 1940. It replaced the Aborigines Protection Board and was supposed to modernise Aboriginal welfare but it continued many of the Protection Board's policies towards children. It was abolished in 1969 and replaced by the Aborigines Welfare Directorate. Responsibility for Aboriginal children was then transferred to the Department of Youth and Community Services.
When the Aborigines Welfare Board was created the Under Secretary of the Colonial Secretary's Department was appointed chairman and provision was made for ten other members, of whom one was to be a full-blooded Aborigine and one either a full-blooded Aborigine or a person having an admixture of blood, as representatives for their people.
The policy of the Aborigines Welfare Board was to encourage the assimilation of Aborigines into the general community. The Board sponsored the erection of houses for leasing and provided housing loans to the Aborigines. It exercised general supervision over matters affecting the welfare of Aborigines, managed the Aboriginal stations and reserves, provided for the custody and maintenance of Aboriginal children whose parents were unable to care for them and provided scholarships, travelling expenses, uniforms, textbooks, etc. for children of necessitous Aboriginal families.
The Aborigines Welfare Board held its final meeting on 29 April 1969 and was replaced by the Aborigines Welfare Directorate. Responsibility for Aboriginal children and welfare services to Aboriginal people was transferred to the Department of Child Welfare and Social Welfare (later the Aborigines Services Branch, Youth and Community Services).