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Australia's policy to provide duty free and quota free access to all goods from Least Developed Countries (LDCs) came into effect on 1 July 2003. The policy decision is partly based on an Australian Government report (Productivity Commission, 2002). It contends that not only will the removal of tariffs on goods originating from LDCs have little impact on Australian consumers or producers, but also that there will be little overall economic benefit flowing to LDCs. In this paper we examine the evidence more thoroughly, and argue that the benefits to LDCs are understated in the Productivity Commission report. [ABSTRACT FROM AUTHOR]