The top marginal income tax rate of 45% applies to taxable income **above $190,000** for Australian resident individuals in the 2025-26 financial year. That is, income from $1 to $190,000 is taxed at lower graduated rates; every dollar over $190,000 is taxed at 45 cents in the dollar (excluding the Medicare levy).

**Working:**

The 2025-26 resident individual tax brackets are:

| Taxable income | Rate |
|---|---|
| $0 - $18,200 | Nil |
| $18,201 - $45,000 | 19% |
| $45,001 - $135,000 | 32.5% |
| $135,001 - $190,000 | 37% |
| $190,001 and over | **45%** |

The 45% bracket therefore starts at **$190,001** (i.e., the threshold above which it applies is $190,000).

**Controlling authority:** The income tax rates for resident individuals are set by the Commonwealth Parliament under the *Income Tax Rates Act 1986* (Cth), administered by the **Australian Taxation Office (ATO)** on behalf of the Commonwealth.