Gladstone Pty Ltd is a resident Australian company that is a trustee of a discretionary trust. During the 2020-21 tax year the trust estate derived $100,000 of interest income from Australian sources and $100,000 rental income from foreign sources.

On the 30 June 2021, the directors of the company resolved to distribute one-fifth of the income of the trust estate to each of the following beneficiaries;

• John a 30-year old Australian resident;
• Mandy a 90-year old Foreign resident;
• Anne -Maree a 16-year-old Australian resident and
• V company ( a company resident in Vanuatu)

No resolution was made with respect of the balance income

Required:

Calculate the s. 95 net income of the trust estate and advise how distributions would be taxed citing relevant legislation to support your answer