The Secretary of the Children's Welfare Department described the 1954 Act as a 'very notable milestone on the road of progress in the child welfare field of this state'. The legislation was prepared in close consultation between the government and the many 'voluntary organisations' involved in the care of children.

However, in 1963, Tierney, the Victorian child welfare academic disputed such a view that the 1954 Act was a significant reform. Tierney depicted the Act as more of the same, 'with the outdated and offensive terminology taken out'.

Section 16 of the Act ('Every child or young person who answers to any of the following descriptions shall be deemed to be a child or young person in need of care and protection …') set out the ways in which children could come into the care of the Department. The scope was made wider by the new legislation. For example, a description from the old legislation of children being in the circumstances of 'no visible means and no settled place of abode' was amended to 'no visible means or no settled place of abode'. The Secretary of the Department wrote in 1957 of this legislative amendment: 'This made it possible for more applications to be made to a Children's Court'.

Another new provision in the Act was Section 20(10) which enabled non-government institutions to apply for a child to become a ward of the state when the parent had defaulted in payments to the institution, for six months or more.

Non-offending children were now 'admitted', rather than 'committed' by the Children's Courts.

Part V of the Act relates to the Department's payment of maintenance to children's parents or carers. The 1954 Children's Welfare Act repealed the Children's Maintenance Act 1928. Part V of the 1954 legislation provided for the parents or carers of children in 'necessitous circumstances' to receive a weekly sum from the Department towards the child's maintenance. This provision assisted widows, deserted wives, and wives of prisoners to support their child/ren and keep them in the family home. Children receiving this assistance did not come under the legal guardianship of the Department.