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

A resident pays no income tax on taxable income up to and including $18,200; the first marginal rate (16%) applies only to income above that amount.

**Controlling authority:** The resident individual income tax rates are set by the Commonwealth Parliament through the *Income Tax Rates Act 1986* (Cth) (Schedule 7), under which the tax-free threshold is fixed at $18,200.