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 the first $18,200 of taxable income; the first marginal rate (16%) applies only to taxable income above $18,200.

The controlling authority that sets the resident individual income tax rates is the **Income Tax Rates Act 1986 (Cth)** (specifically Schedule 7, Part I, which sets the rates of tax for resident taxpayers). The rates are imposed under the Income Tax Act 1986 (Cth), and income tax is levied and assessed under the Income Tax Assessment Act 1936 / 1997, but the rates themselves (including the $18,200 nil-rate threshold) are fixed by the Income Tax Rates Act 1986 (Cth), legislated by the Commonwealth Parliament of Australia and administered by the Australian Taxation Office (ATO).