The education union is calling for the Federal Government to deliver a new system of school funding after it was revealed elite institutions are charging annual fees of up to $28,000.

It believes some schools made profits of up to $14 million last year, yet they are still receiving government money.

Australian Education Union president Angelo Gavrielatos blames the Howard government education reforms.

"What we need is a funding system that directs its funding to where it is needed the most to meet the needs of every individual child," he said.

"What we need is a funding system which puts additional funding into public schools so that every child can have access to a public school of the highest quality."

Mr Gavrielatos says the funding system needs major reforms.

"What we are seeing is a funding system which exacerbates social divide rather than moderate social divide," he said.