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This Report examines the provision by the Victorian Government of education services in government schools and concludes that there is scope to achieve substantial improvements in the efficiency with which these services are delivered without reducing the quality of education provided. Victoria's government schools are probably the costliest in Australia whether compared with other State school systems or with nongovernment schools in Victoria. The essential argument of this Report is that, if an efficient and quality education is to be provided in government schools, there needs to be a major reduction in the role of government in delivering educational services. By drawing on evidence from Commonwealth Grants Commission analysis, student teacher ratios, and average expenditure per student, this Report demonstrates that Victoria has a costly State education system when compared with either other States or with the nongovernment school system in Victoria.