Australia have climbed up to 40th in the FIFA rankings after qualifying for the 2014 World Cup, becoming Asia's second highest-ranked team.
The Socceroos claimed seven points from their final three AFC World Cup qualifiers, sealing second place behind Japan in Group B.
Those results helped Holger Osieck's men move above South Korea in the rankings, and they sit three places below Japan in the standings released on Thursday.
Japan also qualified for the World Cup but failed to advance beyond the group stages at the Confederations Cup after losing their three matches.
Iran, who have also booked their place at Brazil, jumped 15 spots to 52nd, nine places behind South Korea.
Confederations Cup champions Brazil were rewarded for their stellar performances in front of their home fans by leaping into ninth spot overall.
Spain remain the world's top-ranked team despite their 3-0 loss in the final, with Germany and Colombia behind them.
Belgium moved into the top 10 for the first time in their history as their talented squad continues to impress in UEFA World Cup qualifying.