'Wake-up call': one in three kids fail basic standards

One-in-three students are failing to meet basic literacy and numeracy standards. (Joel Carrett/AAP PHOTOS)

Australia's literacy and numeracy results tell a tale of two student populations - where those from advantaged backgrounds thrive and everyone else is left behind.

They also tell a tale of a funding gap, as governments across the country came under fire over a lack of resources for the nation's schools.