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

A resident individual pays no income tax on taxable income up to and including $18,200. Above this amount, the first marginal rate (16% for 2025-26) applies to the portion of income between $18,201 and $45,000.

**Controlling authority:** The resident individual income tax rates are set by the **Commonwealth Parliament of Australia** through legislation, specifically the **_Income Tax Rates Act 1986_ (Cth)**, with assessment and collection administered under the **_Income Tax Assessment Act 1936_ (Cth)** and the **_Income Tax Assessment Act 1997_ (Cth)**. These rates are administered and enforced by the **Australian Taxation Office (ATO)**.