The public policy organisation, the Grattan Institute, says a large proportion of school students are unproductive in any given year.
Its School Education Program Director, Pete Goss, says disengagement is widespread.
"It's not a brand new problem. It's now increasingly clear, that a large number of students, about four in every ten students, 40 per cent are disengaged in their learning."
And it's not necessarily aggressive behaviour that's leading to disruptions.
"They're passively disengaged, they're finding ways to avoid work, they might be late for class, it's a real problem, because those students are one to two years behind in their learning, as much as the students who are acting out."
It can also be stressful for teachers.
Pete Goss fears that if schools and universities fail to address the problem, it may lead to teacher burnout as our population grows.
The Grattan Institute recommends giving teachers better information about what strategies work best in the classroom -- re-training them to better manage today's challenges.
Having a mentor also helps, but Australian teachers rarely have that option.
"Contrast that with what happens in Shanghai, a high performing system, and every new teacher has two mentors - one for the subject they're teaching, and one for classroom management."
One key to engaging students is enlightening them as to why they're at school.
That's the model adopted by Hume Central College in Melbourne's northern suburbs.
Called 'school wide positive behaviour', College principal, Irene Iliadis has introduced events such as a fashion show to model correct ways of wearing school uniform.
Engagement is about finding ways to make learning meaningful and relevant to young people. They need to know that somebody knows them, and wants to work with them. We can't, any longer, say 'you will do this, because I say so'. We don't do it at home, we don't do it out in the community, so schools have had to modernise."
Ms Ialidis says the school has seen a 50 per cent drop in class disruptions, and a dramatic improvement in attendance, behaviour and performance.
"It's more the tone that you take, that's pivotal, for that person to know that you care, and what you want is the improved behaviour, and not the 'get out, I don't want you in this class'.
And students like Irem Duman, who has just started year 12, have noticed.
You can definitely see, like the rewards they give you, and the chances and opportunities they give you, for you to study and achieve something in life."
