Despite some promising performances at the World Cup, the Socceroos poor results have seen them drop seven places in the latest FIFA rankings.
Australia now sits 43rd in the world and are now no longer the highest placed Asian federation side after Iran moved up five spots to equal 32nd.
Under Bert van Marwijk, the green and gold lost to France, drew with Denmark and fell to Peru in Russia with those results seeing them slide in the latest rankings.
Eventual World Cup winners France are the new highest ranked nation after surging six spots with runners-up Croatia rising a massive 16 spots to now sit fourth.
2014 World Cup winners Germany were made to pay for their shock early exit in Russia, dropping 14 places to 15th.
Russia meanwhile, surprised many on home soil reaching the quarter-finals and have jumped up 21 spots to sit 49th.
After many years of criticism, these latest FIFA rankings have a new formula behind them with new criteria used to decide where a national team should be ranked.
"The formula, which was approved by the FIFA Council in June after a lengthy period of testing, relies on adding/subtracting points won or lost for a game to/from the previous points total rather than averaging game points over a given time period as in the previous version of the ranking," a statement read.
"The changes, of which there are several, include the fact that inactive teams now preserve their points totals, with no devaluation of older games.
"Points are dropped, however, from losing or drawing against weaker opposition, with the only exception to this rule being matches in knockout rounds of major competitions such as the FIFA World Cup."
The rankings will next be updated on September 20 with a number of internationals set to be played earlier that month.
View the full rankings here.