What is the origin of the idiom "the smell of an oily rag" and when to use it?

The idiom "the smell of an oily rag" is an idiomatic expression primarily used in Australian and New Zealand English. It originated from the idea that something or someone is running on a minimal or nearly empty level of resources. This expression is now used to describe a situation where resources, especially financial ones, are extremely limited, and people are making do with the bare essentials. It conveys the idea of managing with minimal resources and being resourceful in challenging circumstances.