New reforms that will link teachers' pay to performance will be introduced by the NSW government.
The changes to the education system will mean teachers will be paid by ability rather than the current years-of-experience method, The Sunday Telegraph reports.
Principals will have more say in their school's budget, with the state government increasing principal control from 60 per cent to 70 per cent of the budget.
The reforms, set to be announced in Sydney on Sunday, will also allow the NSW Education Department to allocate funding based on a school's requirements rather than on the number of children. There will also be salary incentives for teachers to work in remote areas.
The Director General of the Education Department, Michele Bruniges, told the newspaper the reforms would move NSW schools from "centralised and bureaucratic" to "progressive and innovative".
"The reforms give principals the licence to innovate and their passion for teaching will drive that," she said.
The roll out for the reforms will start in April, with completion in 2015, the paper said.
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