The suburbs of Pepppermint Grove, Nedlands, Cottesloe and Cambridge have been ranked in the top 25 areas to live in, according to BankWest's inaugural Quality of Life Index.
The suburbs of Pepppermint Grove, Nedlands, Cottesloe and Cambridge have been ranked in the top 25 areas to live, according to BankWest's inaugural Quality of Life Index.
The survey, which canvassed 590 local government areas across Australia, showed the best places to live are in the suburbs of major cities.
Twenty-one of Australia's 25 most liveable communities are in urban suburbs of Perth, Sydney, Melbourne and Canberra.
Peppermint Grove was the highest ranked WA suburb coming in at number four, while Nedlands was in sixth position, Cottesloe came in at 11 and Cambridge was at 20.
The index drew on data from the census, the Australian Bureau of Statistics, the tax office and health authorities to rank Australia's 590 LGAs against 10 key criteria: income, employment levels, crime rates, internet access, health, education levels, home ownership, house size, proportion of empty homes and community involvement.
In a statement, the bank said the index challenges the idea that the best living is in seaside towns away from city stresses.
Melbourne is the most liveable city with four of the top 10 local government areas (LGA).
Nine of the top 25 LGAs with the best quality of life have an average house price over $1 million.
Twenty-one of the top 25 areas have a median house price much higher than the state median, with an average premium of $613,910 or 156 per cent.
BankWest retail chief Ian Corfield says the index dispels the sea-change and tree-change "myths" that the best quality of life is found in coastal towns, away from the hustle and bustle of big-city living.
"Although many Australians dream of living on the coast or in the country, in reality the best quality of life in Australia is found in the suburbs," Mr Corfield said in a statement.
"In the suburbs residents often have the best of all worlds with access to good schools, modern hospitals and reliable jobs but also large houses, fast internet connections and low crime rates."
Although Melbourne was deemed the most liveable city Sydney was the country's best paid.
Of the 82 LGAs with an average taxable income above $50,000, 25 were in NSW.
Mosman ($126,884) topped the earnings list followed by Hunter's Hill ($125,177) and Woollahra ($114,191).
Queensland is Australia's jobs state with Barcoo in the central-west boasting 100 per cent employment.
WA is the education state with thirteen local council areas having 100 per cent of 16-year-olds attending secondary school.
South Australia is the nation's good samaritan state with the highest volunteering rates in the country.
Australia's best health can be found among residents of the Snowy Mountains.
At the other end of the liveability index, remote Aboriginal communities in WA, Queensland and the Northern Territory were found to have the lowest quality of life.
Halls Creek in WA was worst off followed closely by Woorabinda in Queensland and Meekatharra in WA.