You definitely don't have to do testing! From my reading (which has been very QLD focused so it might be different in other states) you have to show a curriculum of sorts or at least expected aims and goals and then show your progress but that can be through photos and you writing observations and such. You dont have to register in QLD till 6.5 so I havent done any serious research on the topic yet though as I have time lol.
I have a bit of a woohoo (and a huge proud mum gush) in that I told DD1s kindy teacher we were going to be homeschooling. I told her all about my reasons, my concerns, my plans and what we were currently trying to do and she understood and even said it would really suit DD1 and that she could tell I was a very innovative and involved parent from the bits and pieces DD1 brings into kindy and the things she tells about what she does at home. It was during our teacher interview this morning where she had written DD1s strengths as having a huge thirst for knowledge, tenacity, doer, motivated, self directed... basically a born little learner! She said she is quietly confident, not intimidated and not overbearing, just very sure of herself. That she plays and interacts with anyone and everyone, tries anything and everything, uses the space and resources to their fullest and is just such a bright spark, a total joy. She offered to help organise a second year of kindy if we were interested which is something we might look into as she is obviously enjoying the environment (it is very homely, child led, 5 day fortnight). Feeling very chuffed and validated
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