Labor slams NSW Gonski "hush money"

Federal Labor has accused the NSW premier of selling out students by compromising on demands for needs-based school funding.

Mike Baird has reportedly compromised on a commitment to Gonski funding by submitting a $7 billion proposal to combine federal health and education investment to the Turnbull government.

"Mike Baird has sold out New South Wales students to give a helping hand to his Liberal mate, Malcolm Turnbull - this is a disgraceful backflip," opposition education spokeswoman Kate Ellis said in a statement.