The private schools sector has warned the Federal Government not to treat it as an easy target for cuts.
And Labor has expressed concerns over just how funding for the nation's independent schools will work.
It all comes after Education Minister Simon Birmingham said federal funding for some independent schools may need to be reduced as the Government negotiates new funding deals.
Labor has accused the Federal Government of having a secret hit list of schools earmarked for funding cuts.
Opposition Leader Bill Shorten says every child needs support for education, based on need, and is warning against opening up a funding war pitting school against school.
"For 40 years in education, we've had arguments about government versus non-government. I believe the best answer is to increase the funding to poorer schools according to need, not according to whether or not they're Catholic or non-government or government. Now the vast bulk of poorer schools are government schools. But what we've got is a government who's more interested in fixing up their debt and deficit problems and using non-government schools as a whipping post to create a bad guy in this whole education debate. They should not reopen the government-versus-non-government debate."
The Minister wants a new four-year deal to replace the agreements signed by the former Labor government.
He has described those agreements as a corruption of the Gonski model of needs-based funding.
The funding arrangements were established in 2013, with some deals with states signed under the then-Labor government and some signed after the Coalition won power.
Senator Birmingham says, under the current arrangements, there are 27 different funding deals spanning public, private, religious, independent and private schools.
He says the way the money is currently distributed is unfair.
He says that means private schools could receive less over time.
"That is possible, because, under the arrangements we have, some schools who are notionally overfunded under the models, the 27 different models we have, some schools that are notionally overfunded take more than a hundred years to come into alignment with the current funding model."
The Minister wants the Government's new funding deal in place by early next year.
He wants to tie money to programs aimed at improving student outcomes, including national testing in Year 1.
He wants to make maths and science compulsory throughout a student's school life.
Treasurer Scott Morrison has told the ABC there is more schools funding on offer from the Commonwealth than ever before.
And he has accused Bill Shorten of trying to scare the Australian public.
"We are increasing funding for all schools, and we're actually increasing funding for public schools by even more than we are for private schools over the budget and forward estimates. And the total pie is record. It's going up to $20 billion. Now I know what the Labor Party is doing, and Bill Shorten's doing what he always does. I mean, Bill Shorten's agenda is to engage in cynical, boogieman politics on every single issue. He goes out there, puts the sheet over his head as the big ghost scary thing he does every day, and he tries to scare the Australian people every single day."
Some independent schools fear the renewed discussion around school funding creates uncertainty for parents.
One body governing independent schools in Australia has suggested a Medicare-style levy for education.
Mr Morrison says Senator Birmingham will ensure there is a fair deal based on need and education funding.
"He's not engaged in cynical politics on this. He's trying to work with the states on this. I'd encourage the states and territories to do that, because there is the biggest amount of funding available for schools there has ever been. And we increased it by $1.2 billion in the last budget. So there's more money there, but it has to be allocated based on need -- that's the principal objective -- not on the sweetheart deals and mates' deals that Bill Shorten did when he was education minister."
