If you type in literacy continuum in Google and look at cluster 4, that is what children should be able to do by the END of the first year of school.
it is only expected that children (in nsw anyway) be reading between level 5-8 (reading recovery) by the end of first year of school.
I don't know why people want to teach their kids to read before starting school. I really don't see the benefit.
My son is almost 5. He is starting school next year and can't write his name (only the first letter) and the only reason he can do that is because he's done it at daycare.