Current Affairs: Prime Minister believes the peace deal with private school will end the funding war.

Federal Treasurer Josh Frydenberg is confident Australia's growing economy can help shoulder the cost of the government's $4.6 billion peace deal with Catholic and independent schools. Prime Minister Scott Morrison revealed the deal on Thursday which he believes will bring an end to a long-running war over the Gonski 2.0 school funding model.

Scott Morrison (pictured left) and Rob Stokes (pictured right). Source: AAP