Reporting on educational conditions and facilities for children in isolated areas of Australia, this document presents findings and recommendations submitted by the Australian Senate Standing Committee on Education and the Arts as per their two-year investigation. Areas considered in this report are: extent of the problem; schools in isolated areas (primary, secondary, and multiracial); boarding facilities (independent boarding schools, agricultural high schools, private board and second homes, Assistance for Isolated Children Scheme, and state government assistance); education by correspondence (primary, secondary, and pre-school; schools of the air; television and video cassettes; and commonwealth government's correspondence allowances); special education; and transportation and conveyance allowances. The recommendations suggest that: rural primary school teachers have at least one year's previous teaching experience in a larger school; small primary schools be given improved facilities and teaching materials and additional financial assistance; teacher-pupil ratios in small secondary schools be reduced and promotional incentives for teachers be considered; educational policy in the Northern Territory be reviewed to ensure equal education for Aboriginal and European children; the responsibilities of the Commonwealth and State governments be clarified; correspondence students have access to trained personnel and diagnostic facilities. (JC)