New competition law changes will aim to lift restrictions on retail trading hours, providing greater choice for consumers.
It's one of the 44 recommendations from the Harper Review the government is supporting.
Handing down the formal response to the review on Tuesday, Treasurer Scott Morrison said the government remained open to a further 12 recommendations.
"The Harper review sets out a new frontier for governments at all levels to lead a new phase of change that will deliver better services and more choices for Australians," Mr Morrison told reporters in Canberra.
That in turn will help to support higher living standards.
Australian Competition and Consumer Commission chairman Rod Sims welcomed the response, saying the proposed reforms were the most significant of their kind in over 20 years and once implemented should boost economic growth significantly.
Previous competition reforms of the 1990s and 2000s delivered efficiency improvements that boosted economic growth by 2.5 per cent.
Professor Ian Harper, who led the year long review, said for the government to have accepted in full, in part and to remain open to all of recommendations is a "terrific outcome".
Further consultation would be held on the controversial "effects test" which governs the misuse-of-market-power provisions in the Competition and Consumer Act.
Mr Morrison said this was a complex issue that deserved more work to "get the right outcome".
He said this issue was often couched as being about big business versus small business.
"Competition is actually about consumers, it's about how many choices they have, not how many competitors there are," Mr Morrison said.
The government's responses would be discussed with state treasurers when they next meet, Mr Morrison said.
The opposition said it was embarrassing the government needed a further review of the effects test.
"Sooner or later Malcolm Turnbull is going to have to make a decision on the economy," shadow treasurer Chris Bowen said in a statement.
The government should have ruled out proceeding with a damaging effects test that would "chill competition and put upward pressure on consumer prices".
