Australia's economic freedom score is 82.6, making its economy the 3rd freest in the 2009 Index. Its overall score is 0.4 point higher than last year, primarily reflecting improvement in fiscal freedom as a result of recently implemented tax cuts. Australia is ranked 3rd out of 41 countries in the Asia–Pacific region, and its overall score is well above the regional average.
Australia rates high in virtually all of the 10 economic freedoms. Monetary stability and openness to global commerce buttress an internationally competitive financial and investment environment based on market principles. A strong rule of law protects property rights and tolerates virtually no corruption. Both foreign and domestically owned businesses enjoy considerable flexibility in their licensing, regulation, and employment practices.
Efforts to improve fiscal governance and maintain long-term fiscal sustainability are focused on achieving better efficiency and effectiveness, particularly in health care spending. The National Reform Agenda, adopted in 2006, should continue to promote needed competition in the energy and transport sectors.