Giving every school child in Australia an identity number will allow a seamless tracking of their academic progress, federal Education Minister Julia Gillard says.
The 'student identifier' will be annexed to the My School program which publishes the performance of individual schools on the internet.
The number would allow the literacy and numeracy performance of individual students to be monitored during their school life, especially as they moved from school to school.
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"The reason we need the number is so as a government we don't need the names," said Gillard, defending the plan against assertions it was Orwellian.
The identity of students would be covered by "proper privacy protections" but access would be given to parents and teachers.
Opposition education spokesman Christopher Pyne had said earlier that the student identifier scheme will disadvantage gap year students and those from rural areas.
"We've been warning her for 12 months not to link the scholarships to the rest of the bill," he said.
"She insists on doing so, because she thinks she can bully the opposition, (but) she has misunderstood our determination to stand up for rural Australia and will not be backing down."
