VICTORIA is in danger of becoming the dunce state, with half of our adults unable to read or count well enough to get through daily life.

Victoria only beats Tasmania in the adult literacy stakes, and ranks above the Northern Territory and Tasmania in numeracy.

Australian Bureau of Statistics results released yesterday show just over half of Australians had the literacy skills to meet the basic demands of everyday life and work.

Less than half met expected numeracy levels.

The Adult Literacy and Life Skills Survey was conducted across the country last year.

It assessed prose literacy (ability to read newspapers, magazines), document literacy (ability to read timetables, maps), numeracy, problem solving, and health literacy.

About 7 million Australians, aged 15-74, failed prose.

About 5.6 million were at the expected level, while only 2.5 million were at the top of the prose scale.

Results for document literacy were similar, with 7 million at the bottom, 5.4 million at the expected level, and 2.7 million above standard.

The breakdown gave Tasmania a dubious honour, with 50.7 per cent of adults under minimum skills level.

Then came Victoria (49.2 per cent); Queensland (46.6); NSW (46.5); the NT (46.5); South Australia (45.9); Western Australia (44.1); and the ACT (31.9).

About 7.9 million Australians were below numeracy standards, and only 2.4 million exceeded standard levels.

A whopping 10.6 million Australians were found to be below average in problem solving, while only 800,000 exceeded expectation.

State by state, Tasmania again led (73.1 per cent under minimum skills); then the NT (72); Victoria (70.7); Queensland (70.7); NSW (70.3); SA (69.6); WA (69.0); and the ACT (54.5).

Australian literacy results fall in the middle when compared with the US, Canada, Norway, Italy, Switzerland and Bermuda.

Females topped males in prose literacy, with 56 per cent achieving the standard level or above, compared with 52 per cent of males.

Men proved more proficient in document literacy (55 per cent compared with 51 per cent at or above standard) and numeracy (53 per cent compared with 42 per cent).

The median weekly income for people assessed with the highest level of prose literacy was $890, compared with $298 for those assessed at the lowest level.

The survey found literacy levels decreased with age, with the exception of 15 to 19-year-olds.

But Australian literacy levels have improved over the past decade.

About 17 per cent of Australians recorded the lowest prose literacy level last year, compared with 20 per cent in 1996.

Eighteen per cent had the lowest document literacy rating, compared with 20 per cent in 1996.

The Centre for Adult Education in Melbourne's CBD has about 250 students in literacy and numeracy classes.

The CAE's literacy and numeracy co-ordinator, Dianne Parslow, said she was not surprised by the latest survey results.

"People just keep slipping through the gaps when they are at school," Ms Parslow said.

"Many of our students moved around a lot or had learning difficulties.

"Some are students with English as a second language but many are not."

Ms Parslow said literacy and numeracy skills are essential for daily life, but many people do not seek help.

"Some people rely on their children to help them because they do not have the confidence to do anything about it," she said.