The tax-free threshold for an Australian resident individual for the 2025-26 financial year is $18,200. A resident pays no income tax on taxable income up to $18,200; the first marginal rate (16%) applies from $18,201.

Controlling authority: the resident individual income tax rates are set by the Income Tax Rates Act 1986 (Cth), legislation enacted by the Commonwealth Parliament (and administered by the Australian Taxation Office).