Germany sit atop the FIFA rankings again after the 2014 World Cup winners added the Confederations Cup title to their trophy case, while the Socceroos are ranked No.45.
Victory by a second-string squad lifted Germany up two places, with Brazil and Argentina falling one spot each to No.2 and No.3 respectively.
Portugal jump up four spots to No. 4 after their third-place finish in Russia.
Switzerland and Poland both climb four places to be No.5 and No.6 respectively but Confederations Cup runners-up Chile fall three places to be No.7.
Colombia, France and Belgium complete the top 10 although they all fell three spots, with Spain (No,11), Italy (No.12) and England (No.13) next best.
Already qualified for next year's World Cup, Iran jumps seven spots to lead Asia's contingents at No.23 ahead of Australia, who move up three places from No.48.
Japan are ranked 46th, South Korea 51st while New Zealand have crashed 27 places to be 122nd.
Mexico, fourth-placed at the Confederations Cup, lead CONCACAF teams at No.16 with the United States down 12 places to No.35.
Egypt remain Africa's top-ranked nation, despite falling four spots to No.24.
FIFA rankings published July 6 (last month's rankings in brackets):
1. Germany (3)
2. Brazil (1)
3. Argentina (2)
4. Portugal (8)
5. Switzerland (9)
6. Poland (10)
7. Chile (4)
8. Colombia (5)
9. France (6)
10. Belgium (7)
45. Australia (48)