Labor will invest $120 million to support Catholic and independent schools if elected in November.
Opposition Leader Daniel Andrews said the funding will focus on building and expanding schools in outer-suburbs and regional Victoria where enrolment demand is high.
Under the the dollar-for-dollar scheme, a Labor government would match the sector’s contribution over four years.
Schools that cannot demonstrate need or have cash reserves will not be eligible.
“This is based on need and that’s as it should be,” Mr Andrews said.
Mr Andrews said 38 per cent of students attend Catholic and independent schools.
He said the state could not provide for the next generation without the Catholic and independent sector.
“Therefore it’s appropriate that we partner, that we work together and we make sure that every child gets a first rate education in a first rate classroom,” Mr Andrews said.
Mr Andrews said Labor would provide certainty for the Catholic and independent sector by scrapping the five-year funding arrangements and writing legislation that enshrines the government contribution if it is elected on November 29.