Federal Labor is adopting a wait-and-see approach to reports the competition watchdog is urging the government to sell off assets such as Australia Post.

Australian Competition and Consumer Commission chairman Rod Sims says a root-and-branch review of competition laws should recommend the government relinquish control of long-held assets to maximise productivity and create the greatest benefit to consumers.

"Government ownership versus private ownership massively affects the incentives people have to drive productivity change," he told the Australian Financial Review on Monday.

The Abbott government already has flagged the sale of health insurer Medibank Private.

The possibility Australia Post could be sold off as well follows the privatisation of Britain's Royal Mail.

Opposition frontbencher Anthony Albanese, a former communications minister, wants more detail from Mr Sims.

But he stressed the importance of post offices in regional locations, especially small towns.

"They can be key components of their communities," he told reporters in Sydney, adding there was a danger services could be lost if Australia Post was broken up and sold off to the private sector.

Mr Albanese said it was up to the government to explain its agenda for Australia Post and Medibank Private.

As well, government MPs in regional seats should make clear their views about a sell-off of Australia Post.