## Tax-Free Threshold for 2025-26

**$18,200**

Under the Stage 3 tax cuts legislated via the *Treasury Laws Amendment (Tax Relief So Working Australians Keep More Of Their Money) Act 2024*, the tax-free threshold remains at **$18,200** for the 2025-26 financial year. This is the amount of taxable income on which a resident individual pays no income tax before the 16% first marginal rate applies.

## Controlling Authority

The resident individual income tax rates are set by the **Australian Parliament** (the Commonwealth Parliament), through legislation — specifically the *Income Tax Assessment Act 1997* (Cth) (notably the rate tables in Part 2.5, Division 195) and the *Income Tax Rates Act 1986* (Cth). The rates are administered and collected by the **Australian Taxation Office (ATO)**, a statutory agency within the Treasury portfolio.