The Turnbull government has announced a new school funding deal for both private and public education providers "in the interest of our children and our grandchildren".
Schools across Australia will have their funding boosted by an extra $18.6 billion over the next decade in a plan dubbed “Gonski 2.0” by the Turnbull government.
Prime Minister Malcolm Turnbull on Tuesday announced Commonwealth school funding would increase by 75 per cent from next year over 10 years.
Federal funding will increase to $30.6 billion by 2027, a plan Mr Turnbull said would deliver "real needs-based funding".
The prime minister made the announcement flanked by the Education Minister Simon Birmingham and businessman David Gonski.
"Every parent wants the best for their child, our children deserve schools that are properly and fairly funded," Mr Turnbull said.
Watch: PM announces 'Gonski 2.0'
"In the interests of our children and our grandchildren the time has come to bring the school funding wars to an end."
Mr Turnbull said it was a record commitment and would push a new national debate about ensuring the billions of dollars were transformed into "extraordinary outcomes" for school kids.
David Gonski, who authored the education funding model for the Gillard Government, will lead a new inquiry on improving student school results to be handed to the government by December.
The new deal will ensure that by 2027 the Commonwealth will be providing 20 per cent of public school funding, up from 17 per cent.
Watch: Education Minister Simon Birmingham on the changes
It will end what the government has labelled 27 "sweetheart deals" brokered by Labor with the states and territories, unions and non-government school leaders on funding agreements.
"We are fixing that by getting all states to the same position under the same needs-based formula to ensure that in the future everyone, every student, is treated fairly and equitably," Senator Birmingham said.
Mr Gonski said he was pleased the government had accepted the fundamental recommendations of the 2011 report he was part of, which originally called for a needs-based funding model.
"I was absolutely convinced - and I remain that way - that just because you are disadvantaged educationally doesn't mean you're dumb, doesn't mean you're not capable of being prime minister or whatever of Australia," he said.
About 24 schools in the country's east will have their funding cut.
Watch: Mr Gonski on 'Gonski 2.0'