When you earn money from your work or investments, you will usually have to pay tax.
If you earn salary or wages, your employer is required to withhold some and send it to the Australian Tax Office.
This is called Pay-As-You-Go tax or P-A-Y-G for short.
The amount you pay will depend on how much you earn.
Australia uses a sliding scale of tax so that higher earners pay a higher rate of tax.
Income tax is your total income minus deductions which include things such as work expenses and donations to charity.
If you earned income during a financial year, you are required to submit a tax return to the Australian Tax Office.
It will then assess whether you owe tax or have paid too much during the year and are entitled to a refund.
You can fill out your tax return yourself or through a registered tax agent.