The federal government should get out of schools and let state governments decide the appropriate mix of funding between public and private schools, the nation’s former top mandarin has said.

Martin Parkinson, who helmed the federal bureaucracy for four years before retiring in August last year, said voters needed one level of government to hold accountable for declining school results.

Former public service chief Martin Parkinson. Credit:James Alcock

Speaking to a forum on federal and state finances at NSW State Parliament on Monday, Dr Parkinson said states should take on sole responsibility for the early learning, primary and high school sectors, while the federal government should do TAFE and universities.

"I’m a great fan of a position that the Commonwealth should be right out of anything right up to year 12. Once beyond, in the world of thinking about anything to do with employment, give it all to the Commonwealth," he said.