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

A resident individual pays no income tax on the first $18,200 of taxable income. The first marginal rate then applies to income above that amount: under the rate scale in force for 2025-26 (post the 1 July 2024 changes), income from $18,201 to $45,000 is taxed at 16 cents in the dollar.

Working: taxable income up to and including $18,200 attracts a 0% rate; tax is calculated only on the excess over $18,200. The threshold has been set at $18,200 since the 2012-13 year and is unchanged for 2025-26.

**Controlling authority that sets the resident individual income tax rates: the Income Tax Rates Act 1986 (Cth).**

The rate scale for resident individuals (including the $18,200 nil-rate band and the marginal brackets) is fixed by the Income Tax Rates Act 1986 (Cth) - the rates for resident taxpayers are in Schedule 7 to that Act. (Liability to tax and the meaning of taxable income come from the Income Tax Assessment Act 1936 and Income Tax Assessment Act 1997; the Australian Taxation Office administers and collects the tax. But the rates themselves are declared by the Income Tax Rates Act 1986.)