Universities will no longer be able to get away with "churning" people through teaching degrees and producing graduates who aren't ready for the classroom.
Teaching students will face literacy and numeracy tests before they're allowed to graduate.
Education Minister Christopher Pyne says an overhaul of teacher training will make sure the nation's beginning educators have the skills they need.
A review of teacher education, led by Australian Catholic University vice-chancellor Greg Craven, found some courses were not up to scratch and said the standard across the board had to be lifted.
The review highlighted many concerns about how "classroom-ready" beginner teachers were under the present system.
Mr Pyne said universities must be held accountable for the quality of teaching graduates they produce.
"What the review says and what I will be supporting is a much more sophisticated and rigorous selection process rather than just churning students through teaching degrees," Mr Pyne said.
Teaching courses will also face a tougher re-accreditation process.
Professor Craven said universities partnering with schools was "the single most important action to be pursued".
Teaching institutions will have to show their course is evidence-based and make sure a significant proportion of staff have recent classroom experience.
Course admission will be based on a combination of academic achievement, or ATAR score, and whether students are suited to teaching.
The Australian Education Union says this last recommendation is a mistake and a minimum ATAR should be set for teaching courses.
Federal president Correna Haythorpe was concerned Prof Craven was compromised because his institution offered teaching courses with low ATAR scores.
The eight-member review panel comprised highly regarded education experts across a range of sectors, including the University of Melbourne's graduate education school dean Field Rickards and the Grattan Institute's Ben Jensen.
Mr Pyne hopes the majority of the review's five key proposals and 38 recommendations will be implemented within two years.
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