i'm unfamiliar with any law making kids below twelve walking to school illegal, if it is then a decent portion of my class in primary school were breaking the law, unless it being fine is just a queensland thing. there have been
scares sure, events that make parents afraid to let their children walk to school unsupervised, but at the very least where i grew up buses were only the norm because of how spread out the area was
(edit: to be clear iceland sounds amazing and overall i think i agree with you but i'm genuinely curious about the walking alone being illegal part because that wasnt my experience growing up)