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

Working:
- The basic tax-free threshold is $18,200.
- This is the level of taxable income below which a resident individual pays $0 in income tax before the first marginal rate (19%) applies on income above $18,200.
- The Low Income Tax Offset (LITO) effectively extends the practical tax-free threshold higher (to approximately $21,884 when LITO is fully offset against tax liability), but the legislated tax-free threshold - the point at which the first marginal rate begins - is $18,200.

The controlling authority that sets resident individual income tax rates is the **Australian Parliament** (the Commonwealth Parliament), through the *Income Tax Rates Act 1986* (Cth). The Australian Taxation Office (ATO) administers the tax but does not set the rates; rate-setting is a legislative function of the Parliament.