# response.md

**Threshold:** $190,000

For an Australian resident individual in FY2025–26, the top marginal tax rate of 45% applies to taxable income **above $190,000**. This threshold (and the rate) excludes the Medicare levy, which is a separate 2% levy imposed under different legislation.

**Controlling authority:** The resident individual income tax rates, including the top marginal rate and its threshold, are set out in the **Income Tax Rates Act 1986** (Cth), read together with the **Income Tax Assessment Act 1997** (Cth) and **Income Tax Assessment Act 1936** (Cth), which establish the assessment and rating framework for Australian income tax. The specific rate schedule (resident tax brackets) is contained in Schedule 7 of the Income Tax Rates Act 1986, as amended by subsequent Treasury Laws Amendment Acts (notably the Stage 3 tax cuts legislation enacted via the *Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024*), which restructured the brackets effective 1 July 2024 and continuing into FY2025–26.