Billions of dollars extra will be spent on Victoria's students but principals will retain control of their schools under a funding deal struck with the federal government.
Victoria is the latest state to sign on to the Better Schools plan, in a deal that will deliver an extra $12.2 billion to its public schools over the next six years.
Premier Denis Napthine says Victoria held out for the best available funding deal and assurances schools would keep their autonomy.
"We wanted to get the best funding deal for Victorian schools but we also wanted to make sure we had the best management of Victorian schools with local management by principals and school councils," he said.
"So it was a fair bit of argument, a fair bit of argy bargy, particularly over the last 24 to 48 hours.
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"It certainly hasn't been about playing politics - it's been about fighting for the best deal for Victorian schools."
Federal Education Minister Bill Shorten on Saturday accused Dr Napthine of backing out of a potential deal and trying to delay a federal election date.
Barely 24 hours later Mr Shorten was praising the Victorian government for putting children first as he announced the deal alongside state Education Minister Martin Dixon on Sunday.
"Here you have governments of different political persuasions putting the politics and the white noise ... to one side and saying what's in the best interest of kids," Mr Shorten said.
He fired a shot at those governments still refusing to sign up over fears of a "Canberra power grab".
"People across the political divide including my Liberal counterpart here ... have said we want to be part of this," he told reporters.
The West Australian, Northern Territory and Queensland governments are still holding out and Mr Shorten said he was "pessimistic" about Queensland's chances of signing a deal.
But Queensland Education Minister John-Paul Langbroek said on Sunday his state will sign up to the reforms immediately if it gets the same offer as Victoria.
Mr Dixon said the $12.2 billion in additional funding was a great deal for Victorian students.
"It means every child in every classroom will now be able to reach their potential," he said.
"It also means Victoria can now become one of the top tier performers in the world."
The Commonwealth will pay $6.8 billion and the Victorian government $5.4 billion.
Australian Education Union president Angelo Gavrielatos said the Victorian government had decided it was better off under Labor's plan than the federal coalition's alternative proposal put up on Friday.
"For months, Tony Abbott has slammed the whole idea of Gonski schools funding and has exerted intense pressure on coalition-held state and territory governments to try and derail progress towards agreements in those jurisdictions," he said in a statement.
"That hasn't worked, and so on the eve of an election he has announced a dramatically underfunded alternative in an effort to neutralise the issue.
"The Victorian state government wasn't convinced by that offer, nor will the Australian public be fooled on where the coalition stands on schools funding."
