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Australia's Boxing Day Test flop has gone from bad to worse with the team docked ICC Championship points for a slow over-rate.

Australia have been fined 40 per cent of their match fee and penalised four ICC World Test Championship points for a slow over-rate during their Boxing Day Test loss to India at the MCG.

Tim Paine's side was ruled to be two overs short of the target after time allowances were taken into consideration during the eight-wicket loss.

Former Australian Test star David Boon, who is part of the ICC elite panel of match referees, imposed the sanction.

In accordance to the rules, players are fined 20 per cent of their match fees for every over their side fails to bowl in the allotted time.

In addition, a side is penalised two Test Championship points for each over short.

Paine pleaded guilty to the offence and accepted the proposed sanction, so there was no need for a formal hearing.

On-field umpires Bruce Oxenford and Paul Reiffel, third umpire Paul Wilson and fourth umpire Gerard Abood brought the charge.

Australia currently sit first in the Test rankings, ahead of New Zealand, India and England.

Only the top-two teams will qualify for next year's final.

The four-point penalty will only come back to haunt Australia if things dramatically tighten up in the race for a top-two berth with New Zealand chasing a 2-0 series win against Pakistan to strengthen their chances of making the final.