Labor has pledged $100,000 in bonuses for schools which demonstrate improved attendance rates and literacy and numeracy standards.
Under the $482 million policy, released today, school principals and communities will be able to decide how the money is spent.
Prime Minister Julia Gillard announced primary schools will be eligible for grants of up to $75,000 if they are able to show improvements in literacy and numeracy, as well as lower absenteeism.
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High schools will be eligible for rewards of up to $100,000 based on measures such as Year 12 results, retention rates, and the further education or employment outcomes for graduating students.
The PM said parents, students and teachers will gain access to a national online assessment and learning bank to help support and practice what they learn at school.
The Australian Baccalaureate will sit alongside existing senior secondary school qualifications as a voluntary credential built off the National Curriculum when it is phased in for senior students.
The PM said good teachers will be rewarded through a national system of performance bonus.
Teachers will receive the bonus for the first time based on their performance in the 2013 school year, with funding substantial enough to enable a 10 per cent salary bonus to the top 10 per cent of teachers.
Payments will be made in two instalments in the year following assessment.
