Jacob Fenech

They might earn rental income, and that all goes into this pot that we call assessable income.

From that pot, we then take out things called deductions, which are common things that you would be able to claim under certain rules and legislation, and we'll talk more about that in just a moment.

But then we take the deductions from that initial pot of money and then we have what's called the taxable income.

And so the income that you effectively get taxed on.

So far, so good.

So far, so good.

I like it.

Cool.

And then from that, if you're an individual, it's different to if you're a company or if you have, say, a trust or you have some sort of other legal structure or tax structure.

For most individuals, you pay more tax, i.e., you pay a higher percentage the more taxable income you have.

So the more you make, the more you pay, up to a certain limit.

And that's generally expressed as percentages, known as your marginal tax bracket, and you can check that online.

And then what happens is each year at June 30th, that's the end of the tax year.

You lodge your tax return and we'll explain how to do that in just a moment.

And then depending on whether you can have deductions or not, you might get a tax return from the ATO.

And depending on the timing, I think that takes about up to two weeks.

Is that what the ATO says, Jacob?

And this is a really interesting one because a lot of people worry about like they think they've lodged their tax return.

Now, I think we're in this era where people lodge a tax return and they expect the money to be instantly transferred into their account.

It's not always the way it works.