 Ranked third in the Index of Economic Freedom ( 2010 ) , Australia is the world 's twelfth largest economy and has the fifth highest per capita GDP ( nominal ) at $ 66 @,@ 984 . The country was ranked second in the United Nations 2011 Human Development Index and first in Legatum 's 2008 Prosperity Index . All of Australia 's major cities fare well in global comparative livability surveys ; Melbourne reached top spot for the fourth year in a row on The Economist 's 2014 list of the world 's most liveable cities , followed by Adelaide , Sydney , and Perth in the fifth , seventh , and ninth places respectively . Total government debt in Australia is about $ 190 billion – 20 % of GDP in 2010 . Australia has among the highest house prices and some of the highest household debt levels in the world . 
