The federal government has knocked back a bipartisan call for increased scrutiny of school funding, rejecting the push amid rising alarm about the decline in Australian students' academic results.

Earlier this year, a Coalition-dominated parliamentary committee criticised the "inadequate" administration of tens of billions of dollars in federal funds and said the money was not being distributed in a transparent and accountable way. The committee suggested it was difficult to know if the funding was ultimately going to students based on need.

In this week's PISA results, Australia failed to exceed the OECD average in maths for the first time, and the nation's results in reading and science have declined. Credit:Marina Neil

The February report from the public accounts committee recommended laws be strengthened to ensure funding was being doled out effectively and in line with national priorities and legal requirements.

In its response to the committee, quietly released this week, the government said it "does not agree" with the recommendation, arguing there should be an "appropriate" level of scrutiny that allowed schools to focus on teaching.