This document responds to issues raised in a Schools Council discussion paper analyzing the first years of schooling in Australia. The document is divided into nine chapters covering the following topics: (1) the national and historical context in which early childhood programs currently operate; (2) conditions that foster teachers' ability to work effectively with 5- to 8-year-old children in the schools, such as knowledge of children's characteristics, the use of developmentally appropriate practices, and appropriate staffing levels and class sizes; (3) school entry and transition issues; (4) parents and the community; (5) the accountability of school programs and school- based evaluation; (6) the role of schools in the context of social issues; (7) appropriate preparation for teachers working with 5- to 8-year-old children in schools; (8) methods of inducting teachers into the workplace, inservice training, and wider concerns of the child care industry; and (9) implications of the issues raised in this paper for education systems. A reference list of more than 130 items, a glossary of early childhood terms, and a brief description of early childhood systems in each Australian state are included. (MM)