The way public schools are funded in Western Australia is unfair and outdated, a new report says.
The University of Melbourne paper was released on Saturday and is the first review of state school funding distribution in more than 20 years.
Allocations should no longer be tied to students' year levels, whether a school is primary or secondary, or the area in which the school is located, the study led by Professor Richard Teese recommended.
Schools should receive a uniform price allocation per student and a separate allocation to cover running costs.
Isolated or small schools should attract extra resources, as should schools with more students from low socioeconomic backgrounds.
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Western Australia has a disproportionately high number of students from low socioeconomic backgrounds, the report noted.
It recommended a student's socioeconomic status be determined by looking at their parents' occupations rather than the area in which they live.
WA Education Minister Peter Collier said the study would be taken into account in a new funding model.
"It is clear from this comprehensive review that the current funding mechanism has passed its use-by-date," he said in a statement on Saturday.
Western Australia has not signed up to the federal government's school funding scheme.
NSW, South Australia, Tasmania and the ACT have agreed to the federal reforms, which are based on a review headed by businessman David Gonski.
