Times Higher Education spokesman Phil Baty said Australia continued to offer some of the world’s best universities, but that this year’s index sent “serious warning signs”.

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

“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 rankings, which are closely watched in the sector and used by universities in their marketing efforts, are based on performance indicators across five areas: teaching, research environment, research quality, industry and international outlook.

However, many experts are sceptical of the utility of the index in giving a clear picture of the state of the sector. Australian National University professor Andrew Norton told The Age that the rankings were based on a composite of factors that did not necessarily reflect an institution’s priorities.

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“These are not necessarily the factors that the institutions prioritise and are not necessarily the factors that students, when selecting the university, would prioritise,” Norton said.

Monash University declined to comment and the University of Melbourne did not respond to questions about its lower ranking in this year’s index.

Instead, vice chancellor Duncan Maskell said he was focused on the uni retaining its position as the highest-ranked in Australia.

“The results reaffirm our commitment to excellence in education and research, and serve as a motivation for us to continue delivering to the highest standards,” he said.

Federal Education Minister Jason Clare also warned about putting too much emphasis on ratings.

“Universities are not just about rankings. They should be about students,” he said.

“They should be about helping more Australian students from all walks of life, from the city and the bush, get a crack at uni and ultimately build a career.

“We’ve got a good higher education system in Australia, but the truth is it can be a lot better and fairer.

“That’s what the Universities Accord reforms I am implementing are all about.”

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