In this article, the authors review the way in which the Victorian government has responded to the inclusion of students with special educational needs (SEN) in mainstream schools, and consider what further efforts could be made to improve inclusive educational practices. Key measures introduced by the state education authority in relation to the inclusion of students with SEN in mainstream schools include a new funding mechanism, a whole-school approach to addressing students' reading difficulties, and arrangements to exempt students with SEN from state and national testing. System authorities have been faced with a surge in the number of students identified as having SEN (resulting in funding blowouts and subsequent changes to eligibility criteria). Although intended to support students with SEN in mainstream settings, the approaches adopted may be falling far short of the needs of these students.