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 individual pays no income tax. The first $18,200 of taxable income is taxed at a nil rate; the first marginal rate (16%) then applies to taxable income from $18,201 to $45,000.

Working:
- Income from $0 to $18,200: 0% (the tax-free threshold)
- Income from $18,201 to $45,000: 16% on the excess over $18,200
- Therefore a resident pays no income tax until taxable income exceeds $18,200.

Controlling authority that sets the resident individual income tax rates:
The Australian Parliament, through the Income Tax Rates Act 1986 (Cth). Schedule 7 of that Act prescribes the marginal rates and income thresholds for resident individuals (including the $18,200 tax-free threshold). The tax is imposed under the Income Tax Act 1986 (Cth) and assessed and administered by the Commissioner of Taxation (the Australian Taxation Office) under the Income Tax Assessment Acts 1936 and 1997 (Cth).