The report found that most Australians rate themselves highly in the health stakes.

About 85 percent of people aged 15 and over considered themselves to be in good to excellent health, while an estimated 76 percent of people aged 65 and over were happy with their physical condition.

Smoking rates continue to fall with 16 percent admitting to smoking daily in 2010 compared to 43 percent in 1964. The proportion of students aged 12-15 who had never smoked rose from 53 percent in 2001 to 77 percent in 2011.

There was also a 20 percent fall in heart attack rates between 2007 and 2011, and stroke event rates fell 25 percent between 1997 and 2009.

Kalisch said changes in health behaviors can reduce the impact of chronic diseases.

"The World Health Organization estimates that, worldwide, up to 80 percent of heart disease, stroke and type 2 diabetes, and up to one-third of cancers, could be prevented by eliminating smoking, unhealthy diet, physical inactivity and the harmful use of alcohol, " he said.