## Top Marginal Tax Rate Threshold (2025-26)

The top marginal income tax rate of 45% applies to **taxable income above $190,000**.

### Working

Under the **Treasury Laws Amendment (Tax Cuts for All Australians) Act 2024**, the Stage 3 tax cuts (as amended) established the resident individual income tax brackets from 1 July 2024. For the 2025-26 financial year, the thresholds are:

| Taxable income | Marginal rate |
|---|---|
| $0 – $18,200 | 0% (tax-free) |
| $18,201 – $45,000 | 16% |
| $45,001 – $135,000 | 30% |
| $135,001 – $190,000 | 37% |
| **$190,001 and above** | **45%** |

The 45% top marginal rate therefore begins at **$190,001** (i.e., it applies to taxable income above $190,000).

*(The Medicare levy of 2% is calculated separately and is not included in these thresholds.)*

## Controlling Authority

The resident individual income tax rates are set by the **Australian Parliament** (the Commonwealth Parliament), legislated through the **Income Tax Assessment Act 1997** (specifically in the rates tables in Part 2.5) and the **Income Tax Rates Act 1986**, as amended. The rates are administered by the **Australian Taxation Office (ATO)**.