This report presents findings from a review of international trends in adult literacy and numeracy to identify innovative programs of interest to Australia. Section 1 offers definitions of literacy. Section 2 outlines the international context. Section 3 has case studies of innovative approaches in four Organization for Economic Cooperation and Development countries. The United Kingdom case study highlights the government's commitment to addressing challenges facing the country to remain competitive in a globalized economy and the Learning Age program. The United States case study details reforms needed to increase literacy levels and lifelong learning skills and provides data on provision that uses the family as an important part of the education process. The Sweden case study illustrates how a long tradition of popularly based education for adults has resulted in a learning culture with 80 percent of the population participating in some form of further education. Of particular interest are study circles in adult education. The Spain case study describes Dialogic Literacy Circles, self-directed group learning. Section 4 explores lessons and these challenges for Australia: a policy for lifelong learning; pedagogies for lifelong learning; lifelong literacy for learning; adult literacy; dialogic practice; new technologies and online learning; and family and community learning. Section 5 recommends future directions for Australia in policy, pedagogy, research, and resources. (Contains 62 references and 26 Web sites.) (YLB)