An analysis of the curriculum documents and the writing of educators in Australia about literacy assessment indicates three common themes: literacy learning is assessed directly in a range of contexts from multiple sources; literacy learning is assessed via diverse techniques; and information gathered is stored and synthesized in a variety of ways. Recent developments that will shape future literacy education include the development of state-wide testing, the development of attainment levels and standards, and the development of a national curriculum and national approach to assessment. A number of tensions are apparent upon examination of what is happening to literacy assessment in Australia: (1) the federal government is striving for a national curriculum while state governments are developing their own curriculum frameworks; (2) most states in Australia have avoided employing single or particular measures to assess literacy; (3) an increase in time and effort required by teachers to report information to the states is likely; (4) each state has been surveying the literacy achievements of different age levels; and (5) it is not obvious how the results from national testing and the state-wide attainment level reporting will be used. In order that they do not lose all that they have achieved in literacy practice in their classrooms, educators will need to be more vigilant of the content of federal and state government policies. (Thirty-four references are attached.) (RS)