It's not an issue in Finland because they recognise that it is an issue and have applied resources to address it. When looking at the Unesco stats (lies, damn lies and statistics B) ), you need to understand that different countries apply different definitions to literacy and apply different methodologies to the testing in those samples.
The CIA world factbook lists the following disclaimer on Australia's 99% and Finland's 100%
This entry includes a definition of literacy and Census Bureau percentages for the total population, males, and females. There are no universal definitions and standards of literacy. Unless otherwise specified, all rates are based on the most common definition - the ability to read and write at a specified age. Detailing the standards that individual countries use to assess the ability to read and write is beyond the scope of the Factbook. Information on literacy, while not a perfect measure of educational results, is probably the most easily available and valid for international comparisons. Low levels of literacy, and education in general, can impede the economic development of a country in the current rapidly changing, technology-driven world.
I think that means that they are a bit rubbery!
Australia's own data quotes a rate of non functional literacy at about 45% - to quote from the ABS "Literacy skills are becoming increasingly important in contemporary Australian society. In 2006, just over half of Australians aged 15-74 years had adequate or better prose (54%) and document (53%) literacy skills" (I don't expect this to change much when the latest census data is released)
http://www.abs.gov.au/AUSSTATS/[email protected]/Lo...0Chapter6102008
Finland have a focused program on addressing reading skills in place for a couple of decades now and according to various studies from the EU, PISA and others, rank very highly in the results. It's not because Finns are necessarily better readers than everyone else, its because they have applied the resources to helping people overcome their problems. In short Finland has adopted a very positive approach to reading, lots of libraries, free books for students, great support for those who struggle with reading. And this is in a very small country that in the 70s and 80s ranked very poorly in literacy outcomes.
In terms of direct comparisons, the Nationmaster website is interesting, and you could just as easily plug in Sweden or Norway to get some perspective
http://www.nationmaster.com/compare/Austra...nland/Education
Then this is worth reading
http://www.nea.org/home/40991.htm
Both Australia and Finland (and 25 other developed countries) are participating in the PIAAC
http://www.oecd.org/document/7/0,3746,en_2...1_1_1_1,00.html so some directly comparable data should be available in a couple of years.