Stories are used for diverse pedagogical purposes. Storytelling is a culturally inclusive and widely used pedagogical technique. However, the success of storytelling interventions in education can be dependent upon how teachers engage students to analyse experiences, and events to gain deeper insights to influence change in their thinking and behaviour. This paper firstly provides a literature review which synthesises Australian Curriculum content and outcome-based approaches used in values education in primary schools including storytelling. Secondly, it offers a novel taxonomy supported by a pedagogical model for storytelling. The proposed pedagogical model contains a constructivist process that can enable teachers to catalyse students' thinking to reflect on their own ethical behaviour, values, and actions. Metaphorically, stories and the process of storytelling enable them to understand themselves through mirrors and others through windows. The pedagogical model explains how wisdom is obtained to influence students' behaviour as opposed to only developing students' understanding.