The tax-free threshold in Australia is $18,200 for Australian residents for tax purposes for a full year. This means that if you are an Australian resident, you pay no tax on the first $18,200 of your income. If you earn less than $18,200, you can still claim the tax-free threshold, but you still need to file a tax return. If you paid tax during the financial year but earned below the tax-free threshold, you will be eligible to receive a tax refund. However, if you claimed the tax-free threshold but earned over $18,200, you will need to pay tax on the excess. Australia has a progressive tax system, which means that the more income you earn, the higher the percentage of tax you pay. If you are an Australian resident for part of the year, you will receive a part-year tax-free threshold, which is adjusted based on the number of months you were in Australia during the income year.