Bleary-eyed government MPs are celebrating a major win in securing the Gonski 2.0 schools funding package through parliament during another marathon sitting.
The coalition won crossbench support for the reforms ahead of the long winter break by shovelling an extra $5 billion in to the plan, boosting it to $23.5 billion over the next decade.
It got the 10 crucial crossbench votes needed to get the shake-up over the line after Labor and the Greens voted against it.
After clearing the Senate, the amended bill received its final tick of approval in the lower house about 2am on Friday.
Former education minister Christopher Pyne described the package as a terrific reform.
"It will end decades of arguments about the school funding wars," he told the Nine Network later on Friday morning.
Labor has already vowed to fight against the package all the way until the next election and to restore every dollar cut by the coalition.
"The government has adopted the rhetoric, but not the investment," opposition frontbencher Anthony Albanese said.
"That's why we will continue to argue for more funding for schools, particularly for needy schools."
The Gonski 2.0 package will ensure underfunded schools reach funding targets in six years instead of 10 and $50 million will be spent on a transition fund for Catholic and independent schools over 12 months.
The government also agreed to a new watchdog conducting a review of the schooling resource standard, which is the basis of the new needs-based funding model, and a guarantee the states won't withdraw their funding as more federal money flows through.
The reviews can address whether the commonwealth, states, territories or authorities are not distributing funding on a needs basis, or whether schools are being over or underfunded.
Outgoing Liberal senator Chris Back, who had threatened to vote against the package, climbed aboard after the minister agreed to extend existing arrangements for Catholic and independent schools for a year.
The Greens refused to vote for the bill because of this transition package, but the government successfully negotiated instead with the crossbench.
Education Minister Simon Birmingham said the Gonski 2.0 scheme will ensure equal federal funding for students no matter where they lived, providing incentives for states and territories to meet their end of the funding bargain.
Schools will see changes to the money they receive from 2018.
