According to a new study, Australia has remained the happiest developed nation in the world for the third year in a row.

The new OECD's Better Life Index, which was released Tuesday, showed that Sweden was ranked second and Canada took the third position in the ranking. The index included a total of 36 nations and measures nations on 11 criteria: housing, income, jobs, community, education, environment, civic engagement, health, life satisfaction, safety and work-life balance.

While Australia remained at the top of the list, the US came in at number six. On the other hand, Turkey was ranked the lowest on the list of most happy developed nations. Israel was ranked a low of 24th on the list while it scored average of higher in several areas.

The data also showed that Australia's economy is today 13 per cent larger than it was in 2008, when the global economy was hit by a financial crisis. Out of about a dozen banks with triple-A rating, four are Australian corporations. The country's dollar is strong allowing more Australians to travel abroad for holiday than foreign tourist arriving in the country. The average net household income in Australia was recorded at US $ 28,88, which is 25 per cent higher than the OECD average of US $ 23,047.