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

This is the amount of taxable income on which a resident pays no income tax before the first marginal rate (37%) applies.

The controlling authority that sets the resident individual income tax rates is the Australian Parliament through the Income Tax Assessment Act 1936 and subsequent legislation. The Commissioner of Taxation (Australian Taxation Office) administers the tax system but does not set the rates - Parliament does through legislation.