Australia has slumped two places in the annual World Press Freedom Index for 2019, amid concerns that investigative journalism is in danger with reporters and whistleblowers facing jail under "draconian legislation".

Australia was ranked 21 in the index, which is published every year by Reporters Without Borders, and ranks 180 countries and regions according to the level of freedom available to journalists.

The index says the space left for demanding investigative journalism has been "reduced by the fact that independent investigative reporters and whistleblowers face draconian legislation".

Australia has been ranked 21 out of 180 in the 2019 World Press Freedom Index, dropping two places. Credit:Dominic Lorrimer

"Australia adopted one of the toughest defamation laws of the world’s liberal democracies in 2018, while its laws on terrorism and national security make covering these issues almost impossible," the index says.