BRISBANE, Sept 18 - The Turnbull Government wants all states and territories to agree to literacy and numeracy checks for Year 1 students as part of a new funding agreement.

It comes after an expert panel delivered a report to the government that found many young children are falling through the cracks because there was no standard national check on their skill levels.

Education Minister Simon Birmingham said the panel's report highlighted the need for action.

"By identifying exactly where students are at in their development early at school, educators can intervene to give extra support to those who need it to stop them slipping behind the pack," he said.

But Jones said the current Prep and Year 1 curricula provide plenty of feedback about students' performance.

"No parent wants more exams for their children," she said.

"Once again the Turnbull Government are trying to dictate to states how to run schools."

Jones said at a meeting of education ministers in Adelaide last week Senator Birmingham failed to get any support for the new test.

The expert panel pointed to figures, including the fact that one-in-20 Year 3 students aren't meeting minimum reading standards, as proof problems need to be picked up earlier.

They've suggested a series of short "interviews" between each student and their regular teacher to gauge their performance and flag any concerns.

The panel went out of their way to point out they didn't want the tests to become "NAPLAN for Year 1", recommending the test results be given to parents but not be made public.