Kramer was appointed a lecturer in English in 1958, then senior lecturer and finally an associate professor in English at the
University of New South Wales (UNSW). Kramer remained at UNSW until 1968, when she was appointed Professor of Australian Literature at the
University of Sydney, the first female professor of English in Australia. A major focus of Kramer's critical writing was the works of
Henry Handel Richardson. She also edited the
Oxford History of Australian Literature (1981) Her other appointments include the Secondary Schools Board (1976–82), the Council of the
National Library (1975–81),
NAATI (1977–81) and the Universities Council (1977–86). She served as a senior fellow of the
Institute of Public Affairs (1988–96), a commissioner of the
NSW Electricity Commission (1988–95) and chairman of the board of directors of the
National Institute of Dramatic Art (1987–92). She also served on the boards of large corporations including
Western Mining Corporation and
ANZ Banking Group. In 1986 she received the inaugural Britannica Award for the "dissemination of learning for the benefit of mankind". She also received honorary DLitt from the
University of Tasmania and honorary LLDs from the University of Melbourne and the
Australian National University. She was appointed an
Officer of the Order of the British Empire in 1976. In 1982, she was made a Dame Commander of the order. Kramer was deputy chancellor of the
University of Sydney from 1989 to 1991 and chancellor from 1991 to 2001, becoming the first woman to hold the position. In 1995, she chaired the judging panel of the
Miles Franklin Award where
Helen Darville was conferred the award for her novel
The Hand That Signed the Paper. It was later revealed that Darville alias Demidenko had faked her Ukrainian ancestry on which the book was based. At the request of the parliament and a hostile university senate, the
Governor of New South Wales empowered the senate to dismiss the chancellor of Sydney University in 2001. Kramer retired moments before a controversial senate meeting was to take place to dismiss her. The senate had passed a no-confidence motion concerning to contract details of then-Vice Chancellor
Gavin Brown. ==Personal life and death==