Two Australian Universities Make Top 20
The QS World University Rankings 2026 placed two Australian universities in the global top 20. The University of Melbourne ranked 19th, down from 13th. The University of New South Wales dropped to 20th, falling one place from last year.
Sector Performance Declines
Out of 36 ranked Australian universities, 25 dropped in position compared to 2025. Only seven institutions improved. Australia recorded the third-largest percentage drop globally after Austria and Russia. Despite this, 25 per cent of Australian universities made the top 100. That performance placed Australia fifth worldwide for institutions ranked in that bracket.
Top 10 Australian Universities
Melbourne University Leads Nationally
Vice Chancellor Emma Johnston said the ranking recognised Melbourne’s strength in academic and employer reputation and sustainability.
“As employment outcomes continue to be a key driver of student choice, we have significantly improved our global standing in this category which is a reflection of the value employers place on our graduates and the real-world impact of a University of Melbourne education,” Johnston said.
Go8 Leadership Highlights Challenges
Group of Eight chief executive Vicki Thomson said the global ranking decline came amid international and domestic disruption.
“Despite these headwinds, Australia continues to punch above its weight, ranking fifth overall as the best higher education system in the world. This is testimony to the quality of our universities, and our academic and research staff right across the entire the sector,” Thomson said.
Pressure from International Policy Shifts
QS chief executive Jessica Turner said overseas students continued to underpin strong Australian university performance.
International education contributed $51 billion to the economy in 2023–24. However, Australian institutions faced increasing challenges. Turner noted concerns about structural underfunding and ongoing university restructuring.
Government Reforms Impact Student Numbers
The federal government has introduced measures to curb foreign student intake. It now aims to reduce enrolments to 270,000 annually. These reforms have decreased funding available for research and broader institutional functions. Turner highlighted the impact of these changes.
“Despite the individual institutional successes and achievements, which are evident again in this year’s ranking, there are areas of concern for Australian higher education overall,” Turner said.
Wider Policy Debate Fuels Uncertainty
Turner also pointed to broader national issues shaping public sentiment.
“International students have been drawn into a wider national debate around migration and housing, where they are sometimes perceived as contributing to systemic pressures,” she said.
“But it is essential to recognise their broader value to Australian campuses and communities, not only as a significant economic contributor, but as a vital source of cultural diversity, talent and global engagement and soft power.”
International Politics Adds to Sector Strain
A “turbulent year” in global politics has added to pressures on Australian higher education. Thomson said mixed messages from the US, Australia’s main research partner, complicated matters.
“This … threatens our very capacity to deliver on our mission of education and research,” she said.
“And yet despite these headwinds, Australia continues to punch above its weight … that we have two Go8 members ranked in the top 20 and six in the world’s top 50, is an outstanding result and must not be taken for granted but rather leveraged in these contested times.”
Reputation Declines Continue
RMIT’s director of strategic insights, Angel Calderon, said recent federal policies and financial limits had damaged global perceptions.
“Over the past five years, we have seen the reputation of Australian universities gradually decreasing,” he said.
“Organisational restructuring, staff movements, operational deficits and any kind of disruption are likely to influence institutional perceptions elsewhere.”
Performance by Key Indicators
Australia’s academic and employer reputations suffered significantly. Twenty institutions dropped in academic reputation. Thirty fell in employer reputation. However, Australia maintained high rankings in faculty citations and internationalisation metrics.
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APAC Rivals Rise
Asian institutions have gained ground. Mainland China and India showed strong upward trends, with over 40 per cent of their universities improving. Four of New Zealand’s eight universities also rose in rankings. Australia now faces intense competition across the Asia-Pacific region.
Global Top Three Remain Unchanged
Massachusetts Institute of Technology ranked first for the 14th straight year. Imperial College London and Stanford University followed in second and third.
Sector Calls for Policy Clarity
Turner said universities needed clearer government policy and stable research funding models.
“In what has been a turbulent year for Australian higher education, universities are calling for sustainable research funding models and greater policy certainty around international education,” she said.
“These are critical to safeguarding and strengthening one of Australia’s greatest national assets, particularly as the country faces growing competition from across the APAC region.”
International Influence Questioned
At least seven Australian universities had research programs paused by the Trump administration this year. A further twelve received US government questionnaires about political alignment. These moves raised concerns about foreign interference and long-term research partnerships.
Conclusion
Despite strong performances from two universities, most Australian institutions declined in global rankings. The sector now faces funding pressures, reduced enrolments, and international competition. Universities and stakeholders continue to call for a coordinated national approach to protect higher education as a global asset.
