**Tax-free threshold (FY2025–26): $18,200**

An Australian resident individual pays no income tax on taxable income up to $18,200. The first marginal rate (16%) applies to income from $18,201 to $45,000.

**Controlling authority:** The resident individual income tax rates and thresholds are set by the Australian Parliament through legislation — specifically the *Income Tax Rates Act 1986* (Cth), read together with the *Income Tax Assessment Act 1936* and *Income Tax Assessment Act 1997*. The Australian Taxation Office (ATO) administers these rates but does not set them.