The Programme for International Student Assessment (PISA) found student performance has declined by the equivalent of more than a full school year in maths and nearly a full year in reading and science.
"If our kids can't read, write and do maths and science, then we've failed", she added.
Socio-economic status also played a stronger role in Luxembourg than in other countries - students from an advantaged background outperformed their disadvantaged classmates by 122 score points in reading, with the OECD average being 89.
Queensland's reading score was on par with the national average and just below in other areas.
Despite the ongoing decline, New Zealand's average scores were all above OECD averages and sufficient to place New Zealand among the better-performing nations in reading and science.
The Northern Territory and Tasmania recorded the worst results with the same scores in maths (465) and science (481).
In terms of gender equality, Thai girls scored higher than boys in mathematics by 16 points.
As Education Week reported, PISA reading results indicate American teens are able to comprehend the main idea and draw simple inferences in a medium length text, but comprehension and comparison skills when other texts and ideas are introduced - so-called critical thinking skills - are lacking.
Victorian Education Minister James Merlino said an overhaul of the national maths curriculum was urgently needed to "make sure it is relevant and engaging for students and to reverse the long-term decline in Australian students" maths skills'.
Gonski Institute for Education director and former NSW minister Adrian Piccoli believe the state's elective school system is failing students.
Carr reportedly said the fact that US teens only performed at proficiency level on two of six levels in reading is "not good at all". The gap between the highest and lowest performing students is widening, despite $1 trillion in Federal spending over 40 years designated specifically to help close it.
"On a scale of 0 to 1,000, average scores in mathematics literacy across the education systems ranged from 591 in B-S-J-Z (China) to 325 in the Dominican Republic", stated NCES.
Amin said the Pisa 2018 which involved 6,111 participants selected to represent 388,638 of 15-year-old students in the country, also showed that they only read when they were forced to or for a specific goal rather than as an interest.
Education Minister Dan Tehan admitted the results were disappointing and said he would raise the matter at a meeting of the Education Council in Alice Springs next week.
"Our students should be ranked among the best in the world". We need to take a closer look at that.
"My message to the state and territory education ministers is this: leave the teachers" union talking points at home and be ambitious. Worldwide, about 500,000 students across 72 countries participated.
The highest performer was the grouped provinces of Beijing-Shanghai-Jiangsu-Zhejiang in China.
"Despite the lack of interest in reading as a hobby, three reading materials enjoyed by students according to the survey are comics, and fictional and non-fictional books", he said.