The product and labour market reforms since the early 1990s have played a pivotal role in enhancing employment and productivity, and ultimately growth performance. Despite this progress, important margins still exist for improving the functioning of product markets and a new reform wave was launched with the National Reform Agenda (NRA), and more recently, the COAG reform agenda. It is also necessary to cut red tape and to reduce the geographical segmentation of markets, which hampers efficiency. In the case of the labour market, the main challenge is to preserve flexibility following the phasing out of some aspects of the WorkChoices reform, which led to equity concerns. This chapter reviews the government’s reform projects that aim at enhancing product markets and revising the industrial relations system and provides an assessment of ways to further improve them.