The federal government says Australia's strong ranking on a global economic index shows the nation is punching above its weight.
But acting Treasurer Bill Shorten said the country can't afford to be complacent.
"We can't be complacent - the world does not owe Australia a living," Mr Shorten told reporters in Melbourne on Friday.
"What we need to do is not rest on our laurels."
The US-based think tank Heritage Foundation's 2012 index of economic freedom shows Australia in the third spot, after Singapore (2) and Hong Kong (1), and ahead of New Zealand and Switzerland.
Australia's overall score was 83.1 index points, up 0.6 points since 2011, reflecting better scores in trade freedom, government spending and fiscal freedom.
The US was ranked tenth.
The index, which is prepared in partnership with The Wall Street Journal, has been published each ear since 1995.
It measures the economic success of 184 countries around the world against 10 benchmarks, including property rights and entrepreneurship.
