The Federal Government says it will overhaul education funding in a bid to end "the school funding wars", but Labor has condemned the plan as "an act of political bastardry".

Key points: Proposal to provide $242.3b — 75pc increase in recurrent spending — over 10 years

Proposal to provide $242.3b — 75pc increase in recurrent spending — over 10 years Simon Birmingham says deal would result in funding cut for 24 schools

Simon Birmingham says deal would result in funding cut for 24 schools Malcolm Turnbull says David Gonski to deliver new education report dubbed "Gonski 2.0" by year's end

Prime Minister Malcolm Turnbull outlined plans to increase Commonwealth funding from $17.5 billion in 2017 to $30.6 billion in 2027 — a 75 per cent increase in recurrent spending.

He has also directed businessman David Gonski, who led the former Labor government's review of education, to conduct another review of the sector.

But the funding announcement is less than the amount previously proposed by Federal Labor, which state and territory education ministers have been calling for.

The Federal Government has been locked in a bitter funding dispute with the state and territory governments for years.

Next week's federal budget will provide an extra $2.2 billion for schools over four years in addition to the $1.2 billion outlined in the 2016-17 budget.

New needs-based system to determine funding

"We will ensure that all schools and states transition to an equitable funding model within a decade," Mr Turnbull said.

Mr Turnbull said the Government would also introduce a new needs-based system to determine school funding across the country.

"It will ensure that students with the same needs will be treated exactly the same in terms of Commonwealth funding — no matter which state they reside in, or the school system they are being educated in."

The Government intends to legislate the funding model, which means it does not need approval from the state and territory education ministers.

The changes will still have to pass through Parliament with support from the Senate crossbench, should Labor oppose the legislation.

Education Minister Simon Birmingham said the new deal would result in a funding cut for 24 schools on the east coast.

Mr Turnbull said Dr Gonski would deliver another report on the education sector by the end of the year, dubbing it "Gonski 2.0".

Funding cuts for private schools

Mr Turnbull said the current education model was a "patchwork system" of 27 different funding models.

"Some schools are overfunded, others were short-changed, and the transition to a new funding deal was spread out, in some cases, by more than a century. That inequality will end now," he said.

Mr Birmingham said the overhauled model would be "sector-blind" and include funding cuts for private schools.

"Over the next four years, it will see growth in funding of some 4.2 per cent, per student across Australia," Mr Birmingham said.

"Importantly, most of it geared into the Government sector where need is greater and the gap to close in terms of Commonwealth share is larger."

'Act of political bastardry': Labor

Shortly after the announcement, Opposition Leader Bill Shorten said the overhaul would leave schools $22 billion worse off than they would have been under a Labor government.

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Labor's education spokeswoman, Tanya Plibersek, said the overhaul was "an act of political bastardry" and said Mr Turnbull was pretending he had saved needs-based school funding.

"It is an attack on Australian children and their parents and their teachers and principals are awake to it," she said.

"It's a disgrace dressed up in a press conference the day before the Prime Minister jets out of the country so he doesn't have to deal with the fallout from angry parents, angry teachers, and angry principals."

The union movement, which has targeted the Coalition on education funding for years, also condemned the funding announcement.

"There has been no consultation with schools or state governments on this," Australian Education Union vice-president Meredith Peace said.

"Not a single state supports scrapping Gonski funding."