Socioeconomic status is one of the key factors influencing student learning outcomes. Firstly to understand the reasons why socio economics status effects student achievement, it must be first defined. Many researches have defined socioeconomic status in many different ways however for the purpose of this paper I will be using the definition by Chapman and Ryan (2005, pp 497-498); "In Australia socioeconomic status is measured on wealth defined by home postal address, family wealth, personal assets and parents educational background". However this is ambiguous as it does not take into account other variables such as actual home ownership, alternative postcode residence, full ownership of home and assets, share portfolios, family inheritance monetary liquid funds and personal choice. Cary (2011) states that there are two main reasons why socioeconomic status influences students outcomes. This includes both educational and socio cultural reasons. Based on the literature this paper will examine these factors and how they play a major role in influencing students learning outcome in schools.