"If they are picked up before this though, we put them on our 'watch list'."
Developed by Dr Karyn Carson, the research uses results from a simple computer test which assesses how well a child can identify sounds and words. It takes about 10 minutes.
Dr Carson's supervisor, UC's College of Education pro vice-chancellor Gail Gillon, said the test could predict with 92 per cent accuracy a child's reading ability one year after it was taken.
During the test, children were asked to match pictures.
"There might be a slide of a dog and they have to find the other picture that will come up on the screen that will start with the same sound that 'dog' does," Professor Gillon said.
The test could be an early indicator for dyslexia.
"One of the strong features associated with dyslexia is a phonological awareness difficulty," Professor Gillon said.
"As an early screen it would be one red flag [for dyslexia] ... but it would need to be looked at in conjunction with other things."
Researchers hoped to release the programme free to schools once it was finalised.