Miss H- Sorry this is so tough for you, I understand how hard it is. My DD started Kindy in WA yesterday too, and her birthday is the 23rd June, so she made the cut off by 7 days. Luckily for us she is more than ready to go, and has been in daycare on and off since she was 9 months old, so is ussed to being left- however, when she first started daycare we went through a similar thing.

I am also a teacher in the WA public system, and my honest advice would be not to keep her at home untill she starts year 1, you would probably find she would still have seperation anxiety even then, and she would have missed out on soo much learning. My advice would be to talk to the teacher, and ask whether she could do 1 day per week, or half days until she has settled in. Please don't make a judgement based on the first few days, it really will take a good couple of weeks for a child to get used to a new environment, especially if they are used to being at home with you. I know that it seems they are young (which they are). Early Childhood Educators are excellent at what they do, and they are able to see if a child is having trouble making friends, or joining in, and they use games and other activities to help them develop these skills.
I know your heart is breaking for your DD, but please give it a little bit more time and as hard as it is, try and not show her how you are feeling, as she will pick up on this and react too it. Good Luck!