The Harrington Family Trust, a discretionary trust, derived assessable income of $200,000 and had allowable deductions of $63,000 for the year ended 30 June 2020. Included in the trust's assessable income of $200,000 was a fully franked dividend received from CSR Ltd of $7,000. The company tax rate is 30%. The Trustee, Irena Harrington, is unsure if this has any impact on the 2020 net income of the trust above. For the year ended 30 June 2019, the trust made a tax loss of $24,000. 

The Trustee, Irena Harrington, decided to distribute the net income of the trust to the following beneficiaries: Tim Harrington (Husband of Irena, living in Brisbane, aged 56) – 50% distribution Jason Harrington (Son, living in London, aged 34) – 25% distribution Lotte Harrington (Daughter, living in Brisbane, aged 17) – 25% distribution All beneficiaries are presently entitled and received no other income during the year ended 30 June 2020. Irena Harrington had taxable income of her own totalling $25,000 for the year ended 30 June 2020. 

REQUIRED: 

1. Calculate the net income of The Harrington Family Trust for the year ended 30 June 2020. 

2. Determine the amount to be included in the assessable income of each beneficiary (or trustee) for the year ended 30 June 2020. 

3. Also outline the income tax implications for each beneficiary (ie. who is responsible for paying any taxes owing and what rate of tax will be payable). You are not required to calculate the tax payable of each beneficiary (only their assessable income as required above).