The tax-free threshold for an Australian resident individual for the 2025-26 financial year is **$18,200**. 

### Working
Under the legislated Australian resident personal income tax brackets for the 2025-26 financial year (effective from 1 July 2024 under the Stage 3 tax tax cuts amendment):

*   **$0 – $18,200:** 0% (Nil tax)
*   **$18,201 – $45,000:** 16%
*   **$45,001 – $135,000:** 30%
*   **$135,001 – $190,000:** 37%
*   **$190,001 and over:** 45%

Because the first marginal tax rate (16%) only applies to income earned above $18,200, an individual pays $0 of income tax on their first $18,200 of taxable income.

### Controlling Authority
The controlling authority that sets the resident individual income tax rates is the **Parliament of Australia** (which passes the relevant legislation, such as the *Income Tax Rates Act 1986*). The Australian Taxation Office (ATO) is the government agency responsible for administering and collecting these taxes, but it does not set the rates.