A comprehensive reform agenda can deliver growth for Australia through a more productive and engaged labour force which better meets employer needs; increased participation and advancement in paid work for all workers; and reduced levels of social exclusion. This is sustainable growth with inclusion. The growth of casual, contract and insecure work is one outcome of long-run trends in the Australian economy. But it is not the only outcome. Our assessment shows that the labour market is also characterised by stubborn levels of workforce underutilisation, and significant levels of marginal attachment and exclusion from paid work. These trends are not short-term or cyclic effects of economic downturns such as the current GFC. Thirty years ago, the underemployment rate was only 2.6%. The present underutilisation rate (12.6%) of the labour force represents over 1.5 million Australians of working age. In addition, there are over 800,000 Australians with a disability - many of whom with the right form of assistance could gain paid employment.