The purpose of the 1973 Pilot Literacy Project (Victoria, Australia) was to explore the nature of the problem of nonmigrant adults who had attended school but who considered themselves illiterate or functionally illiterate, to discover what sort of people were illiterate and to what extent, and to examine home influences and educational background. Of the 166 illiterate and semi-illiterate people involved, nearly half were self-generating starters, about one-third responded to a television presentation, and one-third were already known to agencies. The majority had primary school education and over half had one to three years of post-primary schooling. Approximately three-fourths of the group were below 35 years of age. The project geared toward a noninstitutional approach. Tutors, refereed to as group leaders, worked as a task force operating in homes, factories, libraries, and community and church centers. The project was subsidized for 12 groups not exceeding five members. The social benefits derived from group involvement were improved self-concepts, increased employment opportunities, and group unity. Monthly workshops for tutors provided continuous evaluation, information, and support group functions. The concluding section sets forth recommendations by the Victoria Council of Adult Education to combat adult illiteracy. (EA)