The Murray Family Trust is an inter-vivos fixed trust with two adult beneficiaries, Emma and Peter, who both have a 50 per cent interest in the income and capital of the trust. Both beneficiaries are single and have no children. Assume that the trustee does not specifically make beneficiaries entitled to any franked dividends or capital gains (therefore no amount is ‘streamed’). The results of the trust for the 2019/20 year for tax purposes were:

                            $

                        Loss from rental property                        (6 000 )

                        Interest from bank deposits                      4 000

                        Fully franked dividends received            14 500

Required:

1. Calculate the s. 95 net income of the trust citing relevant legislation to support your answer.
2. Assume that in addition to trust income, Emma received a payment summary from her employer that showed that she received $20 000 in salary and had tax instalments deducted totalling $2100. Emma has employment-related deductions totalling $250. Calculate her taxable income and tax payable/refundable for the 2019-20 tax year.