The taxable income threshold above which the 45% top marginal income tax rate begins to apply for an Australian resident individual in the 2025-26 financial year is $190,000.

That is, for taxable income over $190,000, the portion above that threshold is taxed at 45 cents per dollar (the Medicare levy of 2% is separate and additional to this rate).

Controlling authority: The resident individual income tax rates (including this $190,000 top-bracket threshold) are set out in the Income Tax Rates Act 1986 (Cth), as amended (most recently by the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024, which legislated the Stage 3 tax cut changes effective from 1 July 2024 and carried forward into 2025-26). Rates are administered and published by the Australian Taxation Office (ATO) under this Act.