This is according to the inaugural BankWest Quality of Life Index released yesterday.

The shire is ranked 19 out of the nation's 590 local government areas.

Moorabool Shire also made the top 100, sitting at 64.

It was followed by the City of Ballarat at 153, Hepburn Shire at 154, and Pyrenees Shire at 171.

Ku-ring-gai in New South Wales scored the coveted number one spot.

Each local government area was rated on 10 key criteria:

* employment levels;

* crime rates;

* Internet access;

* health;

* education levels;

* earnings;

* home ownership rates;

* house size;

* proportion of empty houses; and

* community involvement.

Golden Plains had the nation's highest home ownership rate at 92 per cent.

The shire is also home to Australia's lowest property-related crime rate with only 1.3 per cent of the local population impacted in 2006/07.

It also has the greatest proportion (98 per cent) of detached houses in Australia.

Golden Plains Mayor Des Guinane described the shire's ranking as "absolutely marvellous".

"I didn't know this was coming, so I'm very pleasantly surprised," Cr Guinane said.

"We are one of the fastest growing municipalities in rural and regional Victoria, and having lived in Golden Plains for most of my life, I've always known that living in Golden Plains was the way to go."

Scarsdale resident Margaret Roberts said the shire's quality of life was what attracted her to the area 13 years ago.

"It's a delightful place," Ms Roberts said.

"I live out on a bush block, and I came here for the quietness, for the access to services, the good quality of life, and for the fact we're not too far away from everything."