The Economist Intelligence Unit did a survey that looked at 80 countries to determine "which country will provide the best opportunities for a healthy, safe and prosperous life in the years ahead."
We've always been known as "the lucky country" but now it's official as Australia came in second behind Switzerland.
Countries were ranked on wealth, life expectancy, crime rates, weather, family ties, and political freedom.
Even though China now has the second largest number of billionaires in the world, half the country is rural and 128 million people are still living below the poverty line.
Australia jumped 11 places since 1988, when a similar survey was done where America was rated number one and the UK seventh.