**Threshold:** The top marginal rate of 45 per cent applies to taxable income exceeding **$190,000**.

For an Australian resident individual in FY2025-26, the resident rates scale is:

| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| **$190,001 and over** | **$51,638 plus 45c for each $1 over $190,000** |

So the top (45%) bracket begins to apply to each dollar of taxable income **above $190,000**. The Medicare levy (generally 2%) is imposed separately and is not included in this figure.

**Controlling authority:** The resident individual income tax rates are set by the ***Income Tax Rates Act 1986* (Cth)** (with the income tax itself imposed under the *Income Tax Act 1986* (Cth) and assessed under the *Income Tax Assessment Act 1936/1997* (Cth)).