An important development in the sociology of education has been the increasing prominence of neo-Marxist theory, whereby inequalities in education are ultimately based on economic class differences. The argument in this paper is that the persistent inequalities in (especially Australian) education - can better be explained in the framework of a neo-Weberian model. According to this model such inequalities are based primarily on the independent effect of cultural and attitudinal differences between status groups and on power differences between them. Support for this argument comes from: (1) Australian survey and census data; (2) Research data - including those reported in Marxist studies of education themselves.