X is a beneficiary in a family discretionary trust (Happy Family Trusts (HPT) that X’s parents established 30 -years ago. The HPT owns three investment properties and two small businesses. Like many discretionary trusts, the trustee of the HPT has an absolute discretion to pay profits to any beneficiary listed in the schedule to the trust deed. X is listed as one of the beneficiaries in the schedule. The HPT had an accounting profit of $250,000 for the financial year ending 30 June 2020. The net income (taxable income) under s 95(1) of the ITAA 1936 for the income year ending 30 June 2020 was $300, ,000. The difference was mainly attributable to lower tax depreciation (compared to accounting) on depreciating assets. The difference was not due to any capital gains/capital profits. The trustee exercised his discretion on 29 June 2020 in favour of X (and other beneficiaries). X was allocated $50,000 out of the profits for the year. This amount was paid into X’s bank account on 29 August 2020