Australia's Hawke Labor Government, elected in 1983, reflects the politics of electoral pragmatism and consensus rather than those of idealism and reform. This paper explores the often conservative and pragmatic policies adopted in the schools area by the Hawke Government and seeks to explain the economic, social, and political factors underlying them. Major value orientations evident in Hawke's education policy are (1) a commitment to maintaining a strong federal role in education reflected in a willingness to improve or maintain levels of federal funding in education; (2) a centralist approach to coordination, policymaking, and accountability in relation to federal funding; (3) an attempt to give equity issues greater attention than excellence; and (4) attention to the vocational/competitive/technological role of education. This paper focuses on the following key related schools policy developments that have occurred under Hawke: the historic schools funding settlement of 1984, the Participation and Equity Program, the Quality of Education Review Committee Report, and the downgrading of the role of the Commonwealth Schools Commission. (MLF)