Australia’s standing as one of the world’s better destinations for tertiary education could be slipping if the latest world rankings are any guide.

The respected Times Higher Education World University Rankings 2025, released on Wednesday, show Australia’s top five universities have fallen in the rankings.

The University of Melbourne retained its position as Australia’s leading university for the 15th straight year despite slipping to 39th place, from 37th previously – its lowest position in the 21-year history of the rankings.

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The University of Queensland (Australia’s fifth highest ranked institution) suffered the biggest drop, falling seven places to 77.

The Times Higher Education World University Rankings are regarded as the most comprehensive, rigorous and balanced rankings in the world, assessing research-intensive universities across 18 performance indicators.

 “While Australia continues to boast many of the world’s very best universities, the data from this year’s rankings provide serious warning signs,” said Phil Baty, Times Higher Education’s chief global affairs officer, in a statement accompanying the data.

“Australian universities are losing ground in terms of their global academic reputation, funding levels, and perhaps most alarmingly, they are losing ground in areas of great traditional strength: international research collaboration and the attraction of international talent.

“I understand that many in the sector are very worried about forthcoming new international student caps, which may further erode income for some top institutions, as well as diminish Australia’s world-leading reputation as an open and internationally facing sector.”

The loss of international student revenue due to border closures during the pandemic and some of the world’s longest lockdowns are seen as part of the reason for Australian universities’ decline, according to the rankings.

Australia has also declined in terms of international staff and international co-authorship, according to the rankings.

Vicki Thomson, Group of Eight chief executive, said in a statement to China Daily the “rankings are the canary in the coal mine for the higher education sector” in Australia.

The Group of Eight comprises Australia’s top eight universities.

The rankings have come at a time when the federal government is looking at placing a cap on the number of new international students studying at Australian universities.

International education was worth A$36.4 billion ($24.5 billion) to the Australian economy in 2022-23, making it the country’s fourth largest export that year.

In August the government announced it would cap new international student enrollments at 145,000 for universities, which is around 2023 levels.

According to economic modeling commissioned earlier this year by Sydney University – where foreign students make up about half of enrollments – the proposed cuts could cost the Australian economy A$4.1 billion and result in about 22,000 job losses in 2025.

“It’s astounding we are in this position given the headwinds the sector is battling,” Thomson said.

“Of the 38 Australian universities ranked this year, 17 have declined in performance and only four have improved their positions.”

She said the Group of Eight universities still top Australia’s rankings, with six in the global top 100, but the introduction of international student caps puts this and the nation’s economy at “great risk”.

“Today, former Labor higher education minister Kim Carr said ‘caps are bad policy’, and analysts are warning that education exports could ‘plunge by around two-fifths’, slashing 0.7 percentage points off growth next year.

“How much clearer can the message be?” Thomson said.

She said universities, leading economists, business and industry have consistently warned the government that a blunt cap on international students will be disastrous for our A$50 billion international education sector.

According to Thomson, the Times Higher Education rankings highlight international education policy as a key reason for the decline.

“First, we had COVID and sent students home during some of the world’s longest lockdowns. Upon returning they’ve being given a clear message that they aren’t wanted, and we are slamming the door shut yet again.”

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Thomson added that international education is vital to Australia’s economy and prosperity – international student spending was responsible for half of Australia’s economic growth last year.

“It’s all downhill from here if the Australian government persists with this fundamentally flawed policy.”

On top of the list is still Britain’s Oxford University, which has maintained the spot for a record nine years in a row. Massachusetts Institute of Technology in the United States is now the second highest ranked university, replacing Stanford, and in third place is Harvard University.

Contact the writer at karlwilson@chinadailyapac.com