Few studies examine the influence on population diets of the healthiness of food retail outlets in the areas surrounding rural schools in Australia. This exploratory cross-sectional study examined associations between food retail environments within 500m and 1 km of 106 primary schools in rural Victoria, Australia, and self-reported diet and measured weight status of grade 4(9-10yo) and grade 6(12-13yo) students (n = 3236). Few significant results were found with a 500m network buffer. At 1 km, there were reduced odds of meeting sugar sweetened beverage (SSB) recommendations with more unhealthy (OR: 0.51, 95 %CI 0.26, 0.98) or takeaway outlets (OR: 0.58, 95 % CI 0.37, 0.89), compared to none of these outlets. Compared to having no supermarkets, the presence of more supermarkets was associated with higher odds of meeting unhealthy snack recommendations (OR: 2.19 95 %CI 1.28, 3.76), SSB recommendations (OR: 1.96 95 % CI 1.23, 3.13) and reduced odds of having overweight or obesity (OR: 0.75 95 %CI 0.57, 0.99). Further investigation into the impact of the food outlet placement on children's dietary behaviours is warranted, in order to inform policy regarding the placement of outlets in proximity of schools.