**Tax-free threshold (2025-26): $18,200.**

A resident individual pays no income tax on the first $18,200 of taxable income. Above that amount the first marginal rate applies (19% on the portion of taxable income from $18,201 to $45,000 for 2025-26).

**Controlling authority:** The resident individual income tax rates are set by the **Income Tax Rates Act 1986 (Cth)** - specifically Schedule 7, Part I, which prescribes the resident rates. (The Income Tax Assessment Act 1936/1997 imposes and calculates the tax, but the rates themselves are fixed by the Income Tax Rates Act 1986.)