Schools will have to prove they're doing enough to make students smarter if they want cash under a Labor government.
The opposition will make school funding conditional on evidence-based learning programs that are proven to increase student results.
The latest election pledge is similar to the Turnbull government's decision to make commonwealth schools funding conditional on student outcomes.
It's about ensuring money makes a difference in the classroom, Opposition Leader Bill Shorten says.
"This will put Australian students on the right track to meet Labor's target for our schools to be back in the top five internationally for reading, maths and science by 2025," he said.
The opposition is also promising to lift the nation's productivity with its school funding plan.
It claims more money spent on school kids will boost gross domestic product by 2.8 per cent, based on research by the OECD.
"The pay-off is real," shadow treasurer Chris Bowen told reporters in Sydney.
WHAT LABOR IS PROMISING
* Funding Gonski in 2018-19, at $4.5 billion cost.
* $3.8 billion more than coalition plan.
* Funding conditional on student results.
* $4.6 million to expand targeted-teaching program.
WHAT COALITION IS PROMISING:
* Extra $1.2 billion for schools from 2018 to 2020.
* Conditional on literacy and numeracy checks for children in Year 1.
* Compulsory English or humanities subject as well as maths or science for prospective university students.
* Schools must have proportion of literacy and numeracy specialists.
* Teachers paid based on competency rather than length of service.
