Australian players have been fined 40% of their match fee while the team has been docked four ICC World Test Championship points for maintaining a slow over-rate in their defeat to India in the second Test.
Tim Paine's men were adjudged to be two overs short of the target in the stipulated period even after time allowances were taken into consideration.
David Boon of the ICC Elite Panel of Match Referees imposed the sanction with Paine pleading guilty to the offence and accepting the punishment.
“In accordance with Article 2.22 of the ICC code of conduct which relates to minimum over-rate offences, players are fined 20% of their match fees for every over their side fails to bowl in the allotted time,” the ICC said in a media release.
"In addition, as per Article 16.11.2 of the ICC World Test Championship playing conditions, a side is penalised two points for each over short."
Australia are the second side after South Africa to have been penalised in the World Test Championship as the Proteas suffered a similar fate in the Johannesburg Test in January and lost six points.
The new points tally for Australia reads 322, though they continue to dominate the points table after a new points system was introduced by the ICC last month.
The reduction of points served as a secondary source of bad news for Australia, who crashed to a humbling eight-wicket defeat to a rejuvenated Indian side.
The Ajinkya Rahane-captained India marked a stunning turnaround from the Adelaide Test debacle to square the series 1-1 heading into the next encounter.