Newman should have expelled Driscoll: oppn

QUEENSLAND'S opposition leader says Premier Campbell Newman should have pushed MP Scott Driscoll out of the Liberal National party, instead of letting him walk away from the party.

Mr Driscoll, the MP for Redcliffe, will sit on the crossbenches after resigning on Friday night, the day before he was likely to be expelled from the Liberal National Party.

Opposition leader Annastacia Palaszczuk says the real test for Mr Newman will be whether he accepts Mr Driscoll's vote when parliament resumes next month.

"Scott Driscoll walked before he was pushed," she told reporters in Brisbane on Saturday.

"It's the failure of the leadership of the premier that it was the [party] executive that was about to take action rather than the premier."

A spokesman for Mr Newman said as Mr Driscoll was now an independent MP it would be up to him to decide how he would vote.

"The Newman government will get on with tackling big issues like job creation, disability services and education reform," he told AAP.

Mr Driscoll is accused, among other things, of secretly controlling a community group in Moreton Bay from his electorate office and paying his wife tens of thousands of dollars in consultancy fees.

Ms Palaszczuk says he should front up to parliament and media to answer a number of questions that still remain unanswered.

"It's not good enough for the MP to be missing in action for months," she said.

She called Mr Driscoll's resignation letter "bizarre".

In the letter he lashed out at allegations against him.

"I supposedly sit there like Dr Evil and get confused between how many millions, billions or trillions are being made while stroking some hairless cat," he said.

"We've heard various utter rubbish allegations that I've basically exercised some sort of special Jedi Mind Control over people on private boards that I've never even sat on myself."

On his Facebook page, Mr Driscoll told his nearly 3,000 friends and supporters that he looked forward to continuing to serve as the MP for Redcliffe.

The Crime and Misconduct Commission is looking into claims of Mr Driscoll's involvement with the community group in Moreton Bay.

The Clerk of the Parliament and parliament's ethics committee are investigating allegations that Mr Driscoll misused his electorate office.

Comment has been sought from LNP President Bruce McIver.

Mr McIver announced on Saturday that nominations are open to replace Senator Barnaby Joyce if he is successful in his bid for the New England seat in the federal election this year.

Mr Driscoll could not be immediately contacted for comment.

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Carmakers target Chinese buyers

FORD, Fiat and other carmakers competing for a share of China's huge but crowded market are showcasing their latest sedans, SUVs and sports cars at the country's biggest auto show.

Ford Motor Co showed off its newest Mondeo sedan and a sport version of its smaller Focus aimed at China's coveted urban buyers, at the Shanghai auto show on Saturday.

Italy's Fiat debuted a Viaggio sedan that it said was its first model created for China.

China's auto market is the world's biggest and total sales rose 13 per cent last year.

But competition is intensifying as sales growth slows and global automakers that see China as a key part of their future spend heavily to create models for local tastes.

GM China president Bob Socia said China was a "very, very competitive market".

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Drama as Venezuelan president sworn in

New Venezuelan President Nicolas Maduro has been jostled by a youth during his inaugural address. Source: AAP

NICOLAS Maduro has been sworn in as president of Venezuela in a ceremony replete with drama as he replaced the late Hugo Chavez.

To cheers in the National Assembly, Maduro dedicated his oath of office to "the eternal memory of the supreme commander" Chavez, who dominated this oil-rich South American country for 14 years until dying from cancer in March.

But the new leader's speech was briefly disrupted when a man in a red shirt rushed onto the stage and roughly pushed Maduro aside to grab the microphone, a breach that led to national television coverage of the event being suspended.

The intruder was removed from the stage and Maduro returned minutes later, clearly angry at the disruption.

"Security has absolutely failed. They could have shot me here," he said, but shaking it off, then declared: "Incident overcome."

Maduro, 50, said in his address that he wanted to begin his presidency "with a call to all Venezuelan men and women to continue to build a better fatherland of peace, an inclusive fatherland for everyone, by everyone."

He urged the opposition to "converse in the different settings where conversations can be held. I am ready to converse even with the devil."

But he then resumed his attacks on those same foes, highlighting what has been a week of soaring political tensions since he was declared the winner of Sunday's snap elections by a narrow margin of 1.8 percentage points.

Looking on were foreign leaders, MPs and other dignitaries who packed the assembly chamber for the swearing-in.

Close allies Presidents Raul Castro of Cuba and Mahmoud Ahmadinejad of Iran were in the audience, along with the presidents of Brazil, Argentina, Uruguay, Bolivia, Peru, Nicaragua, and neighbouring Colombia.

Maduro had met the night before in Lima with regional leaders who extended their congratulations to the new government and urged all sides in the bitterly contested elections to accept "the official results."

The endorsement came just hours after Venezuelan election authorities announced they would conduct an expanded audit of Sunday's ballot returns in response to opposition demands for a full recount.

Opposition candidate Henrique Capriles immediately accepted, congratulating his followers on their "struggle for the truth."

Violent post-election protests left eight people dead and dozens hurt, igniting a crisis as Maduro and Capriles traded fiery accusations over who was to blame.

For Maduro, the election was the culmination of a political career that took him from one-time bus driver and union organiser to Chavez's handpicked successor.

"I am the first post-Chavez president in history," Maduro said on the eve of his swearing-in. The new first lady, Cilia Flores, is a heavyweight in her own right in the ruling United Socialist Party of Venezuela.

But Maduro also lost the votes of hundreds of thousands of Chavez supporters to Capriles, a 40-year-old state governor who was defeated by the comandante in October by an 11-point margin.

The weak election performance suggested Maduro has yet to step out of Chavez's giant shadow with a mandate of his own.

As Maduro entered the National Assembly, supporters showered him with cheers of "Chavez lives, the struggle continues."

Later at an esplanade dedicated to the country's founders, military leaders pledged their loyalty to Chavez's socialist revolution and their new commander-in-chief.

While backed fiercely by the ruling PSUV and the deep pockets of Venezuela's state oil industry, Maduro must also contend with an emboldened opposition and a sombre economic outlook.

Soaring inflation, a weak currency, shortages of basic necessities, and fiscal constraints are a growing challenge to the costly social programs that were among Chavez's signature achievements.

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Police officer shot at a Boston university

A GUNMAN shot and wounded a Massachusetts Institute of Technology police officer in an eruption of shots at the prestigious university , Boston television stations are reporting.

The university warned students in an emergency alert to stay indoors and said that one building on campus had been surrounded by police.

The university said the situation was "extremely dangerous". One building on campus has been surrounded by police.

The police officer suffered "life threatening" injuries, according to several local channels which quoted state police.

MIT is in the suburbs of Boston, where two bombs at the city's marathon on Monday killed three people and injured 180. However, no link between the two incidents has been immediately made.

The university alert said the gunshots started at 10:48pm local time and that the building where the shots were fired had been "surrounded by responding agencies".

"The area is cordoned off. Please stay clear of area until further notice," added the alert.

There was a major police presence in the district including officers with rifles and a search helicopter overhead, news reports said.

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Swan warns of carbon price over-reaction

FEDERAL Treasurer Wayne Swan has cautioned against making too much of a plummeting carbon price in Europe, saying a floating market for Australia is still two years away.

Treasury is forecasting a carbon price of $29 a tonne in 2015 when the local carbon pricing mechanism is linked to Europe's emissions trading scheme.

This week the European price dived below $4 a tonne.

Mr Swan insists Australia's carbon tax of $23 a tonne, introduced on July 1 last year, is a realistic price to set.

"I just would urge you not to get too taken by a particular price at a particular time around a particular event in Europe," he told Sky News from Washington on Friday, noting the price was close to 30 euros (about $A38) two years ago.

The big difference between the Australian forecast and the latest European carbon price could cost the federal budget up to $7 billion, some experts predict.

That's because the government has committed to providing households with financial assistance to offset the impact of the carbon tax.

Mr Swan insists that assistance will continue even if the government collects less carbon tax revenue than it has forecast.

"The household assistance that we have got in place is guaranteed," he said.

The May 14 Budget will include the government's response to a likely lower market price for carbon from 2015.

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Police arrest former Pakistani ruler

POLICE in Pakistan say they have arrested former military ruler Pervez Musharraf in connection with a case involving his decision to fire senior judges while in power.

Police officer Mohammed Khalid said on Friday that authorities arrested Musharraf overnight from his home on the outskirts of Islamabad. He fled there from court Thursday after an Islamabad High Court judge rejected his bail and ordered his arrest.

Khalid said Musharraf was presented before a judge at Islamabad District Court on Friday who will decide whether he will be taken to jail or held under house arrest.

Local TV footage showed Musharraf entering the court in Islamabad amid high security.

Musharraf's lawyer Malik Qamar Afzal says the judge asked police to keep Musharraf in their custody.

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Anti-hunting protest at NSW parliament

THOUSANDS of people have blocked off the street outside NSW parliament to protest against the state government's decision to allow hunting in national parks.

Chanting "Stop the shooting", about 3000 protesters marched through Hyde Park to gather for speeches on Macquarie St on Thursday.

Anne Gardiner, general secretary of the Public Service Association which represents park rangers, asked protesters if they wanted guns in their workplace.

Leanne Taylor from the animal rescue service WIRES questioned whether animals would be humanely killed.

"We have left a footprint on the Australian landscape, and our national parks are the world's wildlife refuge," she said on Thursday.

The protesters held signs reading "Bushwalking, not bushwhacking" and "Keep out the killers".

They also called on Premier Barry O'Farrell to stand up to the Shooters Party.

Last year Mr O'Farrell announced he would allow amateur hunting of feral animals in 77 national parks as part of a deal he made with the Shooters Party in return for their support for his power privatisation bill.

However, the plans have been shelved until the findings of a review are handed down at the end of May.

Former Greens Leader Bob Brown told the gathering national parks were places for peace and serenity and Mr O'Farrell should be ashamed of himself.

"We don't go out into the bush to find bullets and guns," he said.

"We are here for the children, we are here for our future generations and our fellow creatures on this planet.

"Let's hope the premier will think again."

Former Labor MP and environment minister Bob Debus said national parks were designed to protect the state's heritage.

"They are not a shooting range," he said.

"I think we are talking a culture of war on nature conservation by very conservative members of the coalition government of NSW and the Shooters Party."

Lucy Peni, 10, from Hunters Hill, said she didn't want animals to be killed, and was worried she would also be in danger.

"I like the natural feeling, the fresh air, looking for animals and the natural wonders of the world."

Her mother, Tess, said she felt it was important to bring her family along to the protest as they regularly used national parks.

"They might be mistaken for an animal. What if someone is out hunting and they are playing in a tree?"

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Gay marriage debate will go on: Butler

THE debate over gay marriage will continue to evolve and mature in Australia following a vote to legalise it in New Zealand, Social Inclusion Minister Mark Butler says.

Mr Butler supported a recent failed attempt to get similar legislation through the federal parliament.

He said the vote in New Zealand suggests the time will come when equality in marriage for all will be recognised.

The minister said the vote in New Zealand also meant it was inevitable many gay and lesbian couples would cross the Tasman to marry, robbing Australia of a significant economic benefit.

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Barrier Reef misses top dive site list

THE Great Barrier Reef has been snubbed in the Lonely Planet's list of top dive spots but remote caves under the Nullarbor Plain in Western Australia have made the grade.

The travel publisher released its list of the top 10 world dive sites this week, with the Great Blue Hole in Belize taking out the top spot.

Diving at Cocklebiddy Cave, a series of caves about 1200 kilometres east of Perth, came in at number nine, ahead of exploring Greenpeace's wrecked Rainbow Warrior ship which was bombed by French spies in 1985 in Auckland Harbour.

Association of Marine Park Tourism Operators boss Col McKenzie says Lonely Planet may have excluded the Great Barrier Reef to create controversy.

"It's unbelievable that not one of the sites out of the 2600km of reef doesn't rate highly enough," he told AAP.

"There's a little bit of nonsense going on."

He says Cocklebiddy Cave doesn't compare to the Queensland reef, as only experienced divers can visit the site, which includes a 6km tunnel.

Mr McKenzie says the snub is not likely to affect tourist numbers visiting the reef.

A Lonely Planet spokesman says the list isn't definitive and is a one-off guide put together by the publisher.

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NSW L-plater charged with dangerous drive

A LEARNER driver has been arrested in a toilet block after allegedly driving a ute dangerously at 60km/h over the speed limit on the NSW mid-north coast.

Police say the 22-year-old woman was detected travelling at 160km/h in a sign-posted 100km/h zone on the Pacific Highway at Nabiac at about 9.45pm (AEST) on Tuesday.

Officers gave chase and found the utility stopped on the median strip further up the highway after the driver appeared to have lost control.

Police said the driver was arrested after she was found in a nearby toilet block.

She has been charged with dangerous driving, exceeding the speed limit, being an unaccompanied learner, negligent driving and dishonestly obtaining property.

The property offence relates to an alleged failure to pay for fuel at a service station in Wauchope on Monday.

The woman is due to appear in Taree Local Court on May 14.

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WA premier rules out taking on farm debt

STRUGGLING farmers may be thrown a modest lifeline by the West Australian government, with the premier saying it could help out with bank financing but it won't be assuming any debt on their behalf.

WAFarmers has asked Premier Colin Barnett to commit $100 million to a low interest rate loan scheme administered through the Rural Business Development Corporation, helping an estimated 500 farm businesses.

But the Pastoralists and Graziers Association (PGA) said such schemes delayed the inevitable attrition of unviable farms.

On Wednesday, Mr Barnett said he saw farmers battling with a raft of pressures, including low rainfall and live export bans to certain markets, while visiting the Wheatbelt last week.

"They can't sell their sheep and if they can, they're getting very low prices and I've even heard reports some farmers are shooting sheep because they can't afford to feed them and keep them going," he told ABC radio.

Perhaps 10 per cent of farmers in the eastern Wheatbelt area were at risk of losing their farms, he said.

But some should not be propped up.

"It sounds a cruel and hard thing to say, but some farmers probably do need to leave.

"We will do all that we can to see that farmers can place a crop in, but it's got to be farmers who are viable."

The WA government could help but it wouldn't be assuming debt, Mr Barnett said.

"What we hope we can do is come to understanding with banks where we might be able to provide some increased bank financing, but that conversation is yet to take place.

"And I certainly don't want to raise the expectation that the state is going to take over farm debt."

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Gillard urges kids to live up to Anzacs

PRIME Minister Julia Gillard has urged students to do their best to live up to the Anzac legacy.

Ms Gillard gave a brief address to an Anzac service for schoolchildren in Melbourne's eastern suburbs on Wednesday.

She said the Anzacs had set an excellent example at Gallipoli of how the rest of the nation should behave.

"All of us can be proud of what they achieved," Ms Gillard said.

"We can be worthy of the nation for which they gave so much.

"We can set aside a space in our hearts where forgetting never reaches and thanksgiving never stops."

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At least three dead in Boston

US authorities say the Boston Marathon attacks have killed three people and injured more than 120. Source: AAP

US authorities say bombs that exploded near the finish line of the Boston Marathon have killed three people and injured more than 120.

Eight hospitals report that they are treating at least 124 people. Of those, at least 15 are in critical condition.

The injuries ranged from cuts and bruises to amputations. Many victims suffered lower leg injuries and shrapnel wounds. Some suffered ruptured eardrums.

Dr Richard Wolfe, chief of the department of emergency medicine at Beth Israel Deaconess Medical Center, says one or two of the hospital's 21 patients faced a "high probability of mortality".

Associated Press reported that than 130 were injured in the terrifying scene of shattered glass, bloodstained pavement and severed limbs at the world's oldest and most prestigious marathon, authorities said.

A senior US intelligence official said two other bombs were found near the end of the 42-kilometres course.

The fiery twin blasts took place almost simultaneously and about 100 meters apart, knocking spectators and at least one runner off their feet, shattering windows and sending dense plumes of smoke rising over the street and through the fluttering national flags lining the course.

Some 23,000 runners took part in the race, which attracts more than 500,000 spectators.

Meanwhile the US Navy has sent one of its bomb-disposal units to Boston to assist local authorities as needed in the aftermath of the two explosions near the Boston Marathon's finish line.

The three-member explosive ordnance disposal team based at Naval Station Newport, Rhode Island, was sent to Massachusetts after state officials asked for help. Authorities are investigating the bombings and also are checking other bags and packages that may have been left unattended as terrified crowds races away from the chaos Monday.

Associated Press reported that than 130 were injured in the terrifying scene of shattered glass, bloodstained pavement and severed limbs at the world's oldest and most prestigious marathon, authorities said.

A senior US intelligence official said two other bombs were found near the end of the 42-kilometres course.

The fiery twin blasts took place almost simultaneously and about 100 meters apart, knocking spectators and at least one runner off their feet, shattering windows and sending dense plumes of smoke rising over the street and through the fluttering national flags lining the course.

Some 23,000 runners took part in the race, which attracts more than 500,000 spectators.

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NSW homes cheaper after law changes: govt

A NSW government paper recommends speeding up the approval process for many types of developments. Source: AAP

NEW homes will be cheaper to build under the NSW government's overhaul of the state's planning system, says Planning Minister Brad Hazzard.

About 80 per cent of development proposals will qualify for fast-tracked decision making under the changes, estimated to save businesses and families about $174 million a year.

Most of these applications, which include new homes and home extensions, will be determined in less than 25 days.

Mr Hazzard said the government was slashing millions of dollars in red tape.

"That should translate into far faster processes, and holding costs are what contributes to the expense of homes, so we are anticipating that will have downward pressure," he said.

He was unable to put a figure on the cost saving for new homes but said it was logical to expect a drop in prices if more housing was coming in to the market.

NSW Premier Barry O'Farrell said the white paper represented the most significant reform of the state's planning laws in more than 30 years.

"What we are delivering is an opportunity for communities and councils to work together to plan their suburbs, their streets and their regions.

"To deliver homes more affordably, to deliver the jobs closer to where people work and to do so at the same time as infrastructure is being delivered."

Under the changes, communities will have a legal charter to participate in upfront planning of areas, deciding where developments will go, what type they will be and what infrastructure will be needed to support them.

Community consultation was the centrepiece of the reforms, Mr Hazzard said.

"There will be guaranteed capacity for the community to have their say on how they see their local area developing."

"The community will be able to own this planning system, they will own what happens in their local area."

However, he conceded, "There is no question it is a mighty challenge to get the community to switch on at an earlier stage".

State opposition leader John Robertson said the proposed planning laws would give more power to developers.

"This is a regime which will give developers everything they want.

"It will exclude local communities from having a say at the most critical point of the planning process - that is, when the detailed development applications go to a council and no-one in the local community will have a say on anything."

Opposition planning spokesman Luke Foley said it would remove the general consultation process with communities in the preliminary stages of community engagement.

"Whilst cutting out the consultation at the point when development plans become a reality - that is a very cynical breach of faith with people who voted for a return of planning powers to local community."

The white paper is now open for community consultation for the next ten weeks. Legislation will be introduced to parliament in the second half of this year.

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Vehicle sales down in March

The Australian Bureau of Statistics says sales of new motor vehicles fell 0.6 per cent in March. Source: AAP

AUSTRALIAN sales of new motor vehicles fell 0.6 per cent in March.

There were 95,113 new vehicles sold in March, seasonally adjusted, compared with 95,716 in February, the Australian Bureau of Statistics said on Tuesday.

In the year to March, new motor vehicle sales rose 4.5 per cent, seasonally adjusted.

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Policies unaffected by hunger strikes: PM

PRIME Minister Julia Gillard says asylum seekers going on hunger strike won't succeed in pressuring the government to change its policies.

Ms Gillard was commenting on a group of 27 asylum seekers on hunger strike at a Melbourne detention centre.

Last week, the government confirmed one of the asylum seekers had received treatment for dehydration.

While the immigration department won't comment on why the detainees are on strike, it is believed they have been granted refugee status but have had their release into the community refused due to adverse ASIO assessments.

Ms Gillard on Monday stressed the importance of assessing would-be refugees on security grounds.

"We've got duties and obligations to the nation here in terms of properly assessing who's a refugee and making appropriate security assessments," she told ABC Radio.

"You do not change your circumstance as an asylum seeker or a refugee with an adverse security assessment through hunger striking."

Refugee Action Coalition spokesman Ian Rintoul said the detainees were very weak but had resumed drinking fluids.

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Baby in pram hit by car in Sydney

A BABY has escaped injury after her pram was hit by a car and flipped over following a collision in Sydney's southwest.

Paramedics were called to Middleton Grange just before midday (AEST) on Monday, after reports a truck and a car had collided at an intersection.

A NSW ambulance spokeswoman said it appeared the impact of the collision had forced the car into the path of a pedestrian pushing the 16-month-old girl in a pram.

"Paramedics assessed the young child at the scene and she was taken to Westmead Children's Hospital in a stable condition," the spokeswoman told AAP.

A female adult - believed to be the child's mother - was also hit by the car and taken to Liverpool Hospital in a stable condition.

Two male adults travelling in the truck were taken to Fairfield Hospital, one suffering minor injuries, while the driver of the car was transported to Liverpool Hospital in a stable condition.

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Tech-wise firms expect more income: survey

SMALL and medium businesses using cloud computing and websites expect to earn more revenue than firms that don't.

Software provider MYOB's March 2013 Business Monitor released on Monday shows the financial gap between firms confident with the online world and those that are wary was expanding, but the adoption of online technologies had changed little in the past nine months.

In a study of more than 1000 small and medium enterprises (SMEs), 16 per cent used cloud computing in business, up from 14 per cent in July 2012. Firms saying they had a website was unchanged at 38 per cent.

Cloud computing allows access to a shared pool of programs and sites, usually via the internet, as opposed to using individual computer software.

Firms saying they used the cloud were 106 per cent more likely to expect revenue to rise in the past year than those that didn't, up from 53 per cent in July.

Businesses with a website were 60 per cent more likely for revenue to increase, up from 53 per cent.

"It's obvious that as time goes on, Australian business operators using cloud computing are increasingly likely to achieve positive financial results," MYOB chief executive Tim Reed said in a statement.

"That said, I'm surprised fewer than one in every six say they use cloud in business."

Mr Reed said MYOB research showed the need for business to embrace online technologies.

SMEs wanted more government involvement in preparing the sector for an online future, with more than half of respondents stating they would vote for the political party that offered free government-funded training to small business, he said.

Accessing data from anywhere was the most popular reason for using the cloud (52 per cent), while 36 per cent said they liked their staff having the ability to work remotely.

The top reason for those not using cloud computing was a lack of knowledge about its functions and concern over making the "right business decisions" (35 per cent).

This was followed by firms saying they were not "very tech-savvy" and lacked confidence in looking at it for their business (22 per cent).

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Gotye parody video wins FilmLife Award

A PARODY of Gotye's global hit Somebody That I Used To Know has been named the winner of the FilmLife Award.

FilmLife is an annual short film festival that encourages young people to discuss organ and tissue donation.

Young filmmaker Brooke Huuskes won from the 18 entries for her short film Somebody That I'll Never Know. The award was announced on Saturday night in Sydney.

Wally De Backer (aka Gotye) was told about the winning entry and has personally endorsed the competition.

Huuskes is herself an organ recipient. Her father donated a kidney as a "living donor" in 2010. That experience inspired her to enter the FilmLife competition.

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NSW to mull Gillard's Gonski offer

SYDNEY 14 April 2013 - The NSW government says it needs more time to consider the federal government's offer of $2 for every extra $1 that states and territories invest in education.

Prime Minister Julia Gillard on Sunday announced details of Labor's schools improvement plan, which is driven by the Gonski review released a year ago.

The plan is built around the promise of extra base funding of $14.5 billion over six years from 2014.

"Today I make an offer for the extra money required to get us to the school resourcing standard," Ms Gillard said.

"For every one dollar they are prepared to put in to get there, I am prepared to put in two dollars."

NSW Education Minister Adrian Piccoli said the government would "examine the details" of the proposal.

"The NSW Government has constructively supported Gonski because we see it as a win for students," Mr Piccoli said in a statement.

"We continue to work constructively with the Commonwealth to turn this review into an opportunity for all of our students."

The federal government wants agreement from the states and territories at this Friday's Council of Australian Governments (COAG) leaders meeting.

Of the $14.5 billion in extra investment, NSW would get $5 billion, with the majority to go to public schools.

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States told to put up more for schools

THE states have been told to stump up an extra $5.1 billion over six years for schools funding, under a federal government plan to improve the national education system.

Prime Minister Julia Gillard says a total of $14.5 billion would be pumped into the sector from next year, with the commonwealth providing the bulk or 65 per cent.

"It's a lot of money, but I believe it is a wise investment in our children's future and our nation's future," she told reporters in Canberra on Sunday.

"For every one dollar they (the states) are prepared to put in to get there, I am prepared to put in two dollars."

The National Plan for School Improvement reforms build on the Gonski schools funding review released a year ago.

While $14.5 billion over six years falls short of the $6.5 billion a year recommended by the review, Labor says education investment will increase if proposed yearly indexation rates are agreed to.

It wants the states and territories to increase their education budgets by a minimum three per cent annually. If they do, the commonwealth will index its yearly funding by 4.7 per cent.

The states are also being asked to stop education cuts and funding freezes, spread funds fairly and sign a new National Education Reform Agreement.

Ms Gillard warns if the schools funding model isn't addressed, the sector will be $5.4 billion worse off because of a widening gap between spending commitments by the states and the commonwealth.

State leaders are heading to Canberra on Friday for the Council of Australian Governments meeting where the education funding issue will be thrashed out.

If agreement isn't reached, Ms Gillard says the states will be left to fight among themselves for the limited resources available.

So far Western Australia and Queensland have been sceptical about the federal government's plans despite drawn-out, high-level negotiations with officials and schools education minister Peter Garrett.

But if Labor succeeds, Ms Gillard says there will be extra money per student and loadings for schools with disadvantaged pupils, including indigenous children or those with disabilities.

Under the school resource standard, the proposed per student amount for 2014 is $9,271 for primary school pupils and $12,193 for secondary students.

The big winners will be government schools, which will share $12 billion, while Catholic schools will share $1.4 billion and independent schools $1 billion.

"Today's announcement is about distributing funding according to need, distributing to disadvantage," Australian Education Union (AEU) federal president Angelo Gavrielatos said.

Every school will have to have a transparent school improvement plan to ensure it is trying to reach national education benchmarks on numeracy and literacy.

Labor wants Australia's education system to be ranked in the world's top five for reading, mathematics and science by 2025.

"For me, it was education and getting every child a great education that brought me into politics, as a moral cause," Ms Gillard said.

"We cannot have the strong economy that we want tomorrow unless we have the best of education in our schools today."

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