Australian internet speeds have fallen again compared to the rest of the world, says a new survey.

Average Australian connection speeds fell 2.5 per cent in the third quarter of 2012 as the country sank to 40th in the world, according to Akamai Technologies' third quarter "State of the internet" report.

Australia dropped from 39th position globally in the second quarter of 2012, being beaten by five countries in the region. Australia came out on top of New Zealand, however, which ended up in 46th place.

It reflects a trend of global internet connection speeds slowing down around the world in late 2012, suggesting a temporary stall in broadband gains.