Abstract: High-quality schooling fosters the development of creative, informed and resilient citizens who are able to participate fully in a dynamic and globalised world. It also leads to many benefits for individuals and society, including higher levels of employment and earnings, and better health, longevity, tolerance and social cohesion. Overall, Australia has a relatively high-performing schooling system when measured against international benchmarks, such as the Programme for International Student Assessment. However, over the last decade the performance of Australian students has declined at all levels of achievement, notably at the top end. This decline has contributed to the fall in Australia’s international position. In 2000, only one country outperformed Australia in reading and scientific literacy and only two outperformed Australia in mathematical literacy. By 2009, six countries outperformed Australia in reading and scientific literacy and 12 outperformed Australia in mathematical literacy. In addition to declining performance across the board, Australia has a significant gap between its highest and lowest performing students. This performance gap is far greater in Australia than in many Organisation for Economic Co-operation and Development countries, particularly those with high-performing schooling systems. A concerning proportion of Australia’s lowest performing students are not meeting minimum standards of achievement. There is also an unacceptable link between low levels of achievement and educational disadvantage, particularly among students from low socioeconomic and Indigenous backgrounds. Funding for schooling must not be seen simply as a financial matter. Rather, it is about investing to strengthen and secure Australia’s future. Investment and high expectations must go hand in hand. Every school must be appropriately resourced to support every child and every teacher must expect the most from every child. The review was established to develop a funding system for Australian schooling which is transparent, fair, financially sustainable and effective in promoting excellent outcomes for all Australian students.