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Recent Australian education policy initiatives confirm the government’s commitment to social justice (Australian Government 2008, 2012, MCEETYA 2008). A recurrent aim in these policies is the idea that all students should be entitled to benefit from the same high quality education and that schooling should be free from differences arising from student’s socioeconomic background or geographic location. Drawing on a qualitative research study in rural schools in Victoria, Australia, this paper examines students understanding of social justice through the principles of equality and merit. Examining the subjective element of these two principles can make a significant contribution to understanding what is happening in schools and how socially just schooling is.