This study examines the determinants of high school graduation in Australia. It uses two main approaches to estimation. The first of these is a conventional probit model based on a range of family background and demographic variables. This approach is then extended through consideration of a random parameters probit model. The results show, that schools matter to the chances of completing high school in Australia. However, the school effects seem to have more to do with selection of more able students with superior socioeconomic backgrounds than with the independent creation of favourable school or classroom climates.