The Productivity Commission released its research report into 'Standard Setting and Laboratory Accreditation' in November 2006. The Commission was asked to define the appropriate role for the Australian Government in standard setting and laboratory accreditation, the efficiency and effectiveness of current services, and appropriate means of funding. The Commission found there is a need to improve arrangements for the development of Australian Standards and the accreditation of laboratories in Australia. The Commission calls for better justification processes before new standards are developed, an improved appeals and complaints mechanism and more balanced stakeholder representation on committees. The report examines the Government's relationship with the two main non-government bodies in these areas: Standards Australia and the National Association of Testing Authorities (NATA). Overall, both Standards Australia and NATA are effective and their recognition by the Australian Government should continue. However, areas for improvement have been identified and changes to government funding arrangements are needed to better reflect the balance of private and public interests in their activities