VICTORIAN students are staying in schools longer and are more likely to continue onto further education, according to a report.
The Productivity Commission's 2014 Report of Government Services showed the state is well ahead of the national average participation rates at school and higher education.
Education minister Martin Dixon said he was pleased with the results of the report.
"It is pleasing Victoria has the highest retention rate in year 10 to 12 of any state at 83.4 per cent, which shows Victorian students value their education," he said.
"It is also pleasing that Victoria is the only state with higher than 90 per cent school attendance rates in grades 1 to 6 and years 7 to 10, and this is an area where we are continuing to seek improvement through our new attendance reforms."
Lightning Reef Primary School principal Dzintra Martin said the school took a goal-orientated approach to their students learning.
"We are goal-focused with kids," she said.
"So kids have goals and they know what they need to learn next.
"We think that all those factors contributed to an increase in attendance.
"The kids love it, the parents love it and the teachers love it.
"It's a really positive learning environment."
Ms Martin said each student knew their reading ability.
She said the school also offered a program which gave senior students the chance to try different fields of work.
"We have students who go to Jools for Jim," she said.
"They get to follow the staff around, wash hair and feel the industry.
"We find it is great in giving students a goal to achieve."