Classes are conducted by a teacher who sits in one of these studio type class rooms (without all the children) and is able to communicate (these days on the Internet) with her students. In this way she conducts the class, sets and receives assignments and does most of the things that a normal teacher would do.
However, four times each year, students from each grade are required to come together for a week of traditional classroom schooling as is happening here. For some children from the remote stations, national parks, police stations, roadhouses etc, this is their only opportunity to associate with other children of their same age.
I think this was a year 4 class that was in at the time we were there.
In addition to the "Inschool" weeks, the teachers visit each of their students at least once at their homes to see the environments in which they are learning and to meet their tutor. Most of these visits are made by light aircraft.
And to answer the question you are all wondering - School of the Air students more than hold their own against children from traditional schooling in academic tests and when they go on to higher education. I think that is brilliant!!!!
I really wonder how reliable the internet is in the remote areas. Our satellite internet was abysmal and we were not isolated, NBN has made a huge difference :)
I think it must be hard to teach to a computer with no students in front of you. I'm sure these kids do really well - they would surely have less distractions.