I'm sure they just meant starting from year 1 again. They don't skip years except in very exceptional circumstances so year group is dependent on age. As the others have said her contemporaries will have completed pre-primary and probably kindy too. My son finished pp today - they can read, write sentences, know all the basic sight words for spelling, basic maths and science - sounds like your daughter will be at about the same level when they head into year 1. From what I can gather they'll move on to interpreting persuasive text conventions in year 1 (I wish I was joking)