The home to school transition is recognised as challenging for children. There is increasing research evidence for links between a successful transition to school and later positive outcomes in adolescence and adulthood, supporting current views about the importance of early childhood development. This final report of research undertaken on behalf of The Smith Family investigates factors that facilitate or impede the school transitions of Australian children from financially disadvantaged families. Drawing on data from the Longitudinal Study of Australian Children, the research measured family financial disadvantage when the children were aged 4-5, children's school readiness at 4-5 years, and children's school achievement and adjustment at 6-7 years. The report presents results relating to: transition from home to school; financial disadvantage and children's school readiness and progress; risk factors for low school readiness; and school progress at 6-7 years. They show that children from financially disadvantaged families are at greater risk of poor school readiness. School readiness was found to be an accurate predictor of school achievement and adjustment two years later, and financial disadvantage, especially when experienced at both 4-5 and 6-7 years, compounded the probability of poor school progress. The discussion addresses the factors that may account for the associations between school readiness, financial disadvantage and other variables, and the implications of interventions to reduce the gap between financially disadvantaged and other children.