MALCOLM Turnbull has announced schools funding will be increased by 75 per cent over a decade.
The Prime Minister has also announced a second major report into schools funding - Gonksi 2.0 - which will be chaired by the architect of the last major report, David Gonski.
Schools funding will grow from $17.5 billion this year to $22.1 by 2021.
Education Minister Simon Birmingham said the reforms would end "ancient sweetheart deals" with certain schools for the first time ever.
Based on recommendations in the first Gonski report, the Government will provide 80 per cent of Gonski base for non-government schools, up from 77 per cent currently.
It will also lift the contributions for government schools from 17 per cent to 20 per cent by 2020.
Speaking alongside the Prime Minister in Sydney, Mr Gonski said he was very pleased the government had adopted the recommendations for needs-based funding.
He will report to government by December.
Senator Birmingham said the Commonwealth would work with the state governments on implementing the "better fairer" funding model.
He said 24 schools across Australia would experience "negative growth" over the decade.
Mr Turnbull made calls to state premiers today to brief them on the reforms, while Mr Birmingham spoke to Catholic schools.
He made the announcement at a joint press conference in Sydney with Mr Birmingham and Mr Gonski this afternoon.
It comes hot on the heels of a major announcements about higher education funding last night.
Minister Birmingham announced the government would be introducing an efficiency dividend which will effectively mean a $2.8 billion funding cut for universities.
Under the changes, students will be required to pay back loans earlier and degrees will be more expensive.
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