Mr Garrett says the Gonski report to be released on Monday marks the first serious look at education funding in nearly 40 years.
"We will release our response to that report and we will get stuck into the work that's necessary to consider very carefully how we can ensure the best possible education for kids right around Australia, no matter where they live and no matter how much money their parents earn," he told ABC Radio on Monday.
"This is a huge day for education in Australia."
Mr Garrett said University of NSW chancellor David Gonski and his panel considered how best to create a transparent, fair and and effective education funding system.
"If we are going to do well as a country in future, particularly in a century where we are seeing our Asian neighbours both prosper economically and do well educationally, then we need to really be clear about what's needed to help Australian students be the best they can," he said.
The review proposes a base cost for educating a child, with more funding for indigenous students and those with disabilities and who are disadvantaged, Fairfax reports.
It says children will be assessed on their parents' ability to pay school fees with the government allocating additional resources on that basis.
And three-quarters of the $5 billion increase in school funding will be for public schools.
Australian Education Union federal president Angelo Gavrielatos has welcomed the news.
"Today marks the beginning of a new era in school education," he told ABC Radio.
He said the government should now get on with the job and implement the Gonski review's major recommendations.
