The Coalition announced on Wednesday it would match Labor's pledge for the non-government sector by injecting $100 million every year for four years into upgrades and new schools.

The move avoids a pre-election stoush with the powerful Catholic school lobby and neutralises any differences between the two major parties when it comes to private school funding.

Opposition Leader Matthew Guy, who made the announcement in the schoolyard of St Louis de Montfort School in Aspendale, said the capital works fund gave parents options.

"A critically important part of that choice is for parents to have the option of low-fee, independent and Catholic schools," he said.

Similar to Labor, the opposition has also announced changes to streamline planning applications for new non-government schools.

Under these changes, local councils would be stripped of their powers to approve non-government schools, with this responsibility handed to the Planning Minister.

"This small but significant reform will streamline planning applications for non-government schools allowing them to be more responsive to local population growth," Mr Guy said.

The funding pledges from Labor and the Coalition are more than triple the $120 million the Andrews government has invested in non-government schools since 2014.

The $400 million fund will also be used to remove asbestos and dangerous cladding in Catholic and independent schools.

Catholic Education Commission of Victoria executive director Stephen Elder said the announcement was a win for parental choice.

"The right of parents to choose the school that they believe best meets their children’s needs is a fundamental Liberal principle – a principle Liberal leader Matthew Guy has honoured with his pledge today," Mr Elder said.

"This week, the state’s major parties have provided a remarkable vote of confidence in Catholic education. They have not only endorsed the quality and strength of our school system, but its significance to the state.’

The Coalition will take advice from the sectors about which schools need the money. It has already announced $6 million for St Louis de Montfort School.

Independent Schools Victoria chief executive Michelle Green welcomed the news, saying it would help the independent sector cope with growing enrolment demands, particularly in rapidly growing areas.

"It’s a recognition that independent schools help meet the needs of a growing population and provide choice for parents seeking schools that best meet the needs of their children," she said.

The Australian Education Union is calling on both major parties to commit to a significant investment in public school infrastructure ahead of the state election.

The union's Victorian branch president Meredith Peace said non-government schools did not need the extra $400 million and government's focus should be on properly funding public schools.

"I am disappointed," she said.

"Whoever is in government, their priority must be funding for public schools. That's where the majority of children in Victoria go to school and where the kids with the greatest needs go."

Cate Hall, president of public education lobby group Our Children Our Schools, said state governments should not be spending any public money on private school infrastructure until state schools were taken care of.

"This arms race is very disheartening and has nothing to do with need," she said.

"While there has been a very significant investment by the current government, there are still plenty of public schools requiring funding to safely and adequately meet the needs of their students."

Demand for Victorian schools is expected to increase by 90,000 students by 2022.

More than one-third of students in Victoria attend private schools.