Pupils studying the same subject may be marked using different methods under sweeping changes planned for Victoria's public school system.
Under the reforms, which would be introduced in 2013 at the earliest, students could elect to be assessed by sitting an exam, completing course work or writing a thesis, particularly in humanities subjects.
An alternative to the Victorian Certificate of Education will be developed, with a Victorian Baccalaureate offering a broader approach to the final years of schooling rather than the predominantly exam-based VCE.
State Education Minister Martin Dixon received a mixed reception for what he branded his vision for the public education system at the University of Melbourne on Tuesday.
He said principals, school councils and parents would be able to decide what subjects and assessments are offered at their schools, rather than being dictated to by the Education Department.
"It's about autonomy. It's about giving teachers and schools, principals a greater say over what will happen in their government school," he told reporters.
"They know what's best for the students and their school."
Mr Dixon said the department would return control of support staff such as psychologists, speech pathologists and social workers to schools.
All schools would be encouraged to forge partnerships with businesses, local industries and community groups.
Australian Education Union Victorian branch president Mary Bluett said schools already connect with businesses and communities and have a say in what subjects they teach.
"There is not one dollar going in to assist schools with his grand plan," she told AAP.
"It is just a way of saying we are going to cut and then we're not going to do anything and we'll use the fact that we're consulting to avoid addressing anything in the next state budget (next May)."
Education consultant Professor Brian Caldwell said international evidence consistently showed more autonomy and accountability for schools lifted results.
"It's one of the most refreshing speeches that I've heard from a minister for education in Australia or really any other country," he told reporters.
"We've had too many governments around Australia that have been telling schools what to do, directing them, not trusting them."
Opposition education spokesman Rob Hulls said Mr Dixon was echoing former Liberal premier Jeff Kennett before he slashed education funding and closed schools in the 1990s.
"Mr Dixon seems to be adopting the Kennett model of education where you cut programs, you have little central assistance for schools, you demand they fend for themselves and those schools in lower socio-demographic areas suffer and wither," he told AAP.
"This is all done under the umbrella of more autonomy for schools."