**Tax-free threshold (Australian resident individual, FY2025–26):** **$18,200**.

Working: resident individuals pay **nil** income tax on taxable income up to **$18,200**; the first marginal rate (**16%**) applies from **$18,201**.

**Controlling authority:** the **Parliament of Australia**, which sets the rates by Commonwealth legislation — principally the **Income Tax Rates Act 1986 (Cth)** (administered by the ATO).