Greater autonomy for schools and the right of parents to choose where their child is educated are central to the coalition's approach to school funding.
Opposition education spokesman Christopher Pyne says while the coalition does not favour private schools over public ones, it believes it's only fair for the government to support all children's education no matter where they study.
This would give parents greater choice in deciding where their children should be educated.
Mr Pyne outlined the 10 principles his party wants to stick to in considering any school funding changes, in a speech at a forum in Canberra on Tuesday on how to encourage more people to study mathematics.
He welcomed the current independent review of school funding, led by chairman David Gonski, but said any changes must not penalise parents who decide on a private education.
Schools Minister Peter Garrett has said no school will lose a dollar of funding per student under any changes.
But coalition estimates showed a $4.2 billion shortfall over four years if funding to non-government schools was not indexed.
Mr Pyne said this would force schools to have higher fees or cut staff.
He quoted submissions from the Australian Council of Jewish Schools and the Independent Schools Council of Australia to back up his belief that the current model, based on a school's socio-economic status, is the fairest method.
"I want to see an education system where distinctions between government and non-government sectors will become an argument for the salons of the ideological left," Mr Pyne told the forum.
Greater autonomy for schools to decide how to spend funds and be flexible in meeting students' needs had the capacity to transform education in Australia, he said.
The highly centralised and bureaucratic government systems could learn much from private schools on this matter, Mr Pyne said.
"We won't be able to transform education unless we give schools both the empowerment and the skills needed to identify how they can make improvements at the local level," he said.
The coalition is sticking by its policy from the 2010 election to increase the education costs rebate and expand it to cover extra tuition fees, school excursions, sports fees and private school fees.
It is also continuing with another 2010 promise, for Commonwealth funding that compensates for disadvantage or disability to be made portable and be based on nationally agreed definitions of disability.
The government received the final report of the Gonski review before Christmas and will release it, together with an initial response, on February 20.