Activity 1. Short answer questions 1.1 Trusts a. In 1-2 sentences, explain the tax reporting obligations of trusts. A trust has to have its own Tax file number (TFN) and ABN. A trust must determine its net trust income and lodge a trust tax return (Form T) regardless of the amount of income derived by the trust. b. In a couple of short paragraphs, explain how the income of a family trust is assessed and taxed.