All aspiring teachers should study an undergraduate degree followed by a two-year master's, according to the federal teacher's union.

Key points: The AEU wants universities to raise the minimum ATAR score for teaching

The AEU wants universities to raise the minimum ATAR score for teaching The union's submission to a federal government review is contentious

The union's submission to a federal government review is contentious The AEU suggests teachers should have undergraduate and master's degrees

The policy position is part of a submission to a federal government review, chaired by businessman David Gonski, that is looking at how school funding should be used to improve declining levels of literacy and numeracy.

"We surveyed over 4,000 teachers and principals and just 13 per cent of our new teachers rated their teaching courses as very good," Australian Education Union (AEU) federal president Correna Haythorpe said.

"This is of grave concern and one of the reasons we believe it is important to have a postgraduate degree."

But critics of the proposal say five or potentially six years of higher education could deter many aspiring teachers and increase their financial burden.

The AEU has also called for minimum entry standards for teaching courses, including an Australian Tertiary Admission Rank of 70 or above.

The union said the practical component of teaching courses should be more focused on regional, rural and remote placements. ( ABC News: Natasha Robinson )

The number of students entering university with an ATAR of lower than 70 has grown from 25 per cent in 2006 to 42 per cent in 2015.

"We don't want to see universities treating teaching courses as a cash cow. We want to have very high minimum entry requirements so we can attract the top 30 per cent of students into the courses," Ms Haythorpe said.

Masters degree graduate Elise Andrew is glad she became a teacher later in life, and after working in a variety of jobs.

"Teaching is such a complex profession," Ms Andrew said.

"It's an art, it's a science, it's a craft, and having as much preparation and experience as possible is really important."

Ms Andrew completed her master's degree at the University of Melbourne, where Field Rickards helped set up a postgraduate teaching degree in 2008.

The degree focussed heavily on clinical practice — using evidence about how a student is learning to adjust and adapt teaching methods.

"An undergraduate degree is really extending what you learned at school," Professor Rickards, the Dean Emeritus of Education at the University of Melbourne, said.

"Teaching is incredibly complex and challenging and the sophisticated reasoning that's involved in making sure that every child is learning in a class requires at least a master's study."

Years of study could deter aspiring teachers

The union's policy position is contentious and not all school principals believe masters degrees are necessary for the teachers they employ.

Tom Davis is a graduate of a four-year Bachelor of Education and said the degree prepared him well for his job as a primary school teacher.

"Every year I had a substantial amount of theory, practical experience and content knowledge within my course," Mr Davis said.

Mr Davis would like to complete a masters degree some time in the future and agrees it is an ideal qualification.

But he said facing five or six years of study before entering the workforce could be intimidating for some people.

"The money can be a huge implication on people's choice and their future," he said.

"It is expensive to go and study for that long. You have to put that money aside, you have to be ready to pay for it and it can be quite frightening, I think."

Tom Davis says six years of study could intimidate some aspiring teachers. ( ABC News: Natasha Robinson )

His school principal at Montmorency South Primary School in Melbourne, Leanne Sheean, said teachers with undergraduate degrees were well-trained, but needing a higher ATAR score to study would be a good thing.

"I do think there should be a minimum ATAR score because then you would get people are at the top of their proficiency," she said.

In its submission to the Gonski-chaired Review to Achieve Educational Excellence in Australian Schools, the AEU criticised fast-track programs such as Teach for Australia.

It called for the total number of teaching enrolments at universities to be capped, saying a demand-driven higher education system was eroding standards as greater numbers of lower-quality students were accepted.

"We need to lift the status of teaching as a profession," Ms Haythorpe said.

The union said the practical component of teaching courses should be more focused on regional, rural and remote placements, and working with students from disadvantaged backgrounds or with disabilities.

Compulsory mentoring should also be in place.

It also said all schools should be funded to reach 100 per cent of the school resourcing standard, and disability loadings should be reviewed.

The Gonski review is due to be delivered to the Federal Government in March next year.