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Raising labour force participation is of major importance for sustaining vigorous growth, especially in the face of population ageing. The major challenge is to increase participation among women with families and lone parents, disability benefit recipients and older workers over 55. While participation decisions reflect personal choices, these are influenced by policy settings. Despite improvements in "inactivity traps", Australia ranks high internationally in terms of "low wage traps" for lone parents and one earner households. Tackling such "low wage traps" either by addressing allowance and parenting payment income tests or by reducing the lowest income tax rate or raising the threshold at which income tax is first paid, should be a priority. Access to affordable child care also plays an important role in facilitating female participation, and efforts towards this end need to continue. Encouraging older people to stay in work longer requires removing incentives for early retirement. Imposing the recently announced tighter eligibility and participation requirements for disability pensioners uniformly across all recipients would also be beneficial. [ABSTRACT FROM AUTHOR]