The resident statutory zero-rate threshold in nominal and 2025–26 dollars, compared with full-time-adult average ordinary-time earnings where a complete earnings benchmark is available.
Interactive chart
Threshold and AWOTE benchmark restated in 2025–26 dollars.
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Showing Inflation adjusted with 2 available series.
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Key findings
- The statutory zero-rate threshold is $18,200 in 2025-26.
- Its CPI-adjusted value changed by 53.4% from 2000-01 to 2025-26.
- In the latest complete earnings comparison, 2024-25, the threshold was 17.6% of annualised AWOTE.
- The annualised AWOTE benchmark was $103,631 in 2024-25.
How the series interact
This comparison describes measured relationships and timing; it does not treat co-movement as proof of causation.
- The latest complete wage-relative observation is 17.6% in 2024-25; the 2025-26 ratio is deliberately omitted because both half-year earnings observations are not available.
Data table
| Financial year | Threshold (nominal AUD) | Threshold (2025–26 AUD) | Annualised AWOTE (nominal AUD) | Annualised AWOTE (2025–26 AUD) | Threshold / AWOTE | Complete earnings benchmark |
|---|---|---|---|---|---|---|
| 2000-01 | $6,000 | $11,862.02 | $42,039.4 | $83,112.05 | 14.27% | Yes |
| 2001-02 | $6,000 | $11,531.39 | $44,270.2 | $85,082.84 | 13.55% | Yes |
| 2002-03 | $6,000 | $11,186.6 | $46,667.4 | $87,008.26 | 12.86% | Yes |
| 2003-04 | $6,000 | $10,928.91 | $48,570.6 | $88,470.62 | 12.35% | Yes |
| 2004-05 | $6,000 | $10,671.07 | $50,928.8 | $90,577.45 | 11.78% | Yes |
| 2005-06 | $6,000 | $10,337.98 | $52,977.6 | $91,280.24 | 11.33% | Yes |
| 2006-07 | $6,000 | $10,045 | $55,143.4 | $92,319.21 | 10.88% | Yes |
| 2007-08 | $6,000 | $9,714.54 | $57,673.2 | $93,378.08 | 10.4% | Yes |
| 2008-09 | $6,000 | $9,421.94 | $60,990.8 | $95,775.3 | 9.84% | Yes |
| 2009-10 | $6,000 | $9,207.25 | $64,399.4 | $98,823.52 | 9.32% | Yes |
| 2010-11 | $6,000 | $8,929.83 | $67,077.4 | $99,831.65 | 8.94% | Yes |
| 2011-12 | $6,000 | $8,727 | $69,661.8 | $101,323.06 | 8.61% | Yes |
| 2012-13 | $18,200 | $25,889.43 | $73,239.4 | $104,182.76 | 24.85% | Yes |
| 2013-14 | $18,200 | $25,202.69 | $75,168.6 | $104,090.7 | 24.21% | Yes |
| 2014-15 | $18,200 | $24,781.44 | $76,962.6 | $104,793.62 | 23.65% | Yes |
| 2015-16 | $18,200 | $24,446.15 | $78,429 | $105,345.46 | 23.21% | Yes |
| 2016-17 | $18,200 | $24,034.68 | $79,991.6 | $105,635.87 | 22.75% | Yes |
| 2017-18 | $18,200 | $23,576.21 | $82,027.4 | $106,257.99 | 22.19% | Yes |
| 2018-19 | $18,200 | $23,198.4 | $84,247.8 | $107,385.38 | 21.6% | Yes |
| 2019-20 | $18,200 | $22,888.64 | $87,679.8 | $110,267.67 | 20.76% | Yes |
| 2020-21 | $18,200 | $22,529.62 | $89,666.2 | $110,996.98 | 20.3% | Yes |
| 2021-22 | $18,200 | $21,563.14 | $91,473.2 | $108,376.32 | 19.9% | Yes |
| 2022-23 | $18,200 | $20,147.65 | $94,790.8 | $104,934.71 | 19.2% | Yes |
| 2023-24 | $18,200 | $19,337.59 | $99,117.2 | $105,312.51 | 18.36% | Yes |
| 2024-25 | $18,200 | $18,877.43 | $103,630.8 | $107,488.09 | 17.56% | Yes |
| 2025-26 | $18,200 | $18,200 | — | — | — | No |
What this chart shows
The chart compares the resident statutory tax-free threshold with inflation-adjusted values and a full-time-adult earnings benchmark where complete earnings data is available. It is intended as general educational information, not financial or tax advice.
The threshold is the upper boundary of the Australian Taxation Office resident statutory zero-rate band, before considering Medicare levy, offsets, rebates, surcharges or other features. Inflation adjustment uses Australian Bureau of Statistics CPI financial-year averages. The earnings benchmark uses Australian Bureau of Statistics full-time adult average weekly ordinary time earnings, with earnings comparisons omitted unless the required half-year observations are complete.
Methodology and formulas
- The tax-free threshold is the upper boundary of the ATO's statutory zero-rate band, not an estimate of effective net tax after offsets.
- The annual earnings benchmark is 52 times the mean of original AWOTE for November in the preceding calendar year and May in the ending calendar year.
- A financial year is omitted from earnings comparisons unless both half-year observations exist.
Read the shared Finance Charts data and publication methodology.
Sources and attribution
Limitations
- AWOTE covers full-time adults and is not average taxable income or household income.
- AWOTE changes can reflect workforce composition as well as wages.
- CPI indexing and wage indexing answer different questions: purchasing power versus position relative to earnings.
- The statutory zero-rate threshold is not necessarily the income at which every taxpayer first pays net tax.
- CPI measures price change for a representative basket and is not a household-specific cost-of-living index.
- The index reference period is September 2025 = 100; index re-referencing does not change inflation rates.
- AWOTE is an earnings benchmark for full-time adults, not average household income or average taxable income.
- Changes can reflect workforce composition as well as wage changes.
- Rates exclude the Medicare levy, tax offsets, rebates, surcharges and temporary levies.
- A statutory zero-rate threshold is not necessarily the income at which every taxpayer first pays net tax.