It has a modest-sized government, at least compared to other developed nations (see table 25 of this OECD data), and it has a very attractive private Social Security system that puts Australia in relatively good shape when looking at the long-run fiscal health of countries.
But this surely doesn’t mean that Australia has ideal public policy. It ranks #11 for economic freedom, which is better than America, but the Aussies trail first-place Hong Kong by more than one full point in the 1-10 scoring system.
That being said, Australia will probably move in the right direction if Prime Minister Malcolm Turnbull succeeds in his plan to implement real federalism by shrinking the central government and returning tax and spending authority to the states.
Here’s how an Australian media report characterized the issue.