The Rosy Discretionary Trust has a property investment portfolio. During the 2019 income year, the Trustee recorded a net trust income of $168,000. All of the income is derived from Australian property investments. The trustee resolved to distribute the net income of the trust as follows:

Rosy (aged 28)	30%
Indiana (Rosy's sister aged 16)	10%
Sarah (Rosy's sister aged 16, working full time at Coles since January)	10%
RPM Pty Ltd (Australian resident company - 100% owned by Rosy)	10%
The Robe Soccer Club (non-profit, tax exempt community organisation)	5%
Ben (aged 29) - Rosy's Friend who is a bankrupt	10%

There was one discretionary distribution made:

• $10,000 was paid towards Indiana's school fees.

The balance was undistributed.

REQUIRED:

1. a. Complete a Distribution schedule.

2. b. Calculate the tax payable by the trustee.

Answer rating: 100% (QA)

Answer Step 1 Distribution schedule refers to as the limit ... View the full answer