Schools will get access to extra funds if they become more autonomous; parent-based councils could get new powers to select principals and acquire property; and administrative work in small schools will be increasingly outsourced as part of the $16 million agreement.

The changes form part of the federal government's plan to entice at least one-quarter of Australian public schools to become more "independent" over the next three years.

Unlike Western Australia, where the idea was pioneered, Victorian schools opting into the program will not be rebadged as "independent public schools", but will still get access to the money if they adhere to targeted activities designed to make them self-govern and be more accountable for their results.

"We know that great schools have leaders and teachers who have the independence to make the decisions and develop the programs that best meet the needs of their students," said Federal Education Minister Christopher Pyne.

Modelled on the US charter school system, the concept of independent public education generally allows government schools to operate like private schools, with boards appointing principals and leaders having greater control over budget and staff decisions.

But while the concept differs between jurisdictions - and Victoria already has high levels of autonomy - it is nonetheless contentious because critics fear it could exacerbate the gaps in education and lead schools down the path of "privatisation by stealth".

"We already have the highest level of independent schools in the developed world and on the basis of OECD results we aren't near the top at the moment. It could be argued that we should in fact be moving in the opposite direction. Worse still if this is an attempt to further privatise our school systems," said Berwick Lodge Primary School principal Henry Grossek.

The state-federal agreement, obtained by The Sunday Age, shows that funding will be used to:

• Train principals, assistant principals and business managers to "assume greater decision making powers" over their school and staff.
• Give school councils extra powers, which "may include, with appropriate safeguards, an enhanced role in relation to principal selection, acquiring property and assets, and investment".
• Expand the government's so-called Local Administrative Bureau program, which outsources time-consuming paperwork for small schools to education department experts.

Schools will be encouraged to "opt in" to the program, with about 250 schools expected to benefit within the first 12 months. State Education Minister Martin Dixon said the federal money – almost $16 million over four years – would "build the capacity of principals, school leaders and school communities to take full advantage of the level of autonomy already available to them".

The funding deal would also support schools embracing the Napthine government's new governance reforms, which includes moves to merge school councils, overhaul membership, and give parents more say in the performance reviews of their principals.

Ringwood Secondary College principal Michael Phillips said he was open to the changes, pointing out that some schools could have an opportunity to be more innovative and creative with curriculum programs, for example, "without being constrained by bureaucratic decisions".

However, others are already worried about the ongoing push towards self-governing, and the new agreement is likely to exacerbate their concerns. Australian Education Union state president Meredith Peace accused the government of using its autonomy agenda to shift more responsibilities on to schools without extra support.

Tarneit Senior College principal Michael Fawcett agreed, saying he was unconvinced that the latest state-federal deal would improve student outcomes.

"Where's the Gonski money?" he asked. "I'm still waiting for resource funding, let alone some other mythical funding to make us an independent public school system."

But Mr Pyne said the independent public schools funding initiative would "allow Victorian schools to better meet the needs of their student communities".