Yep, don't be too worried about it. It's just to identify exactly what your child can or cannot do at that point in time. It's just one of the many diagnostic tools that schools use to find out what abilities the kids have and they use that information to make sure they are where they need to be and being taught what they need, if that makes sense. Kinda like helping them to tailor learning to your child. Here is the parent info that you should have gotten to help you understand it better

https://www.det.nsw.edu.au/media/dow...acyparents.pdf
https://www.det.nsw.edu.au/media/dow...acyparents.pdf

By all means talk it over with her teacher as she will be able to explain her results to you. but it's really not a big deal