The Productivity Commission was asked to examine the economic and social impact of competition policy and related infrastructure reforms introduced at the Commonwealth, State and local government levels, and to identify measures to increase the flow of benefits or mitigate any transitional costs arising from the implementation of competition reforms in rural and regional Australia. This response from the commonwealth government notes that the Commission found that, in addition to benefiting the Australian economy overall, NCP benefits rural and regional Australia as a whole, with both consumers and the business sector benefiting from reforms. The Commission describes competition policy as having become a scapegoat for some of the effects of these broader influences on rural and regional Australia. The Government endorses the thrust of the Commission's recommendations, which are directed at improving the way in which NCP is implemented, and believes that measures adopted will increase community understanding of NCP, and improve its implementation and operation, ensuring that the full benefits of reform are realised across the whole country. The government's official responses to each of the Commission's recommendations are detailed in this report.