Kiarna is 16 years old and a full time student. For the year ended 30 June 2018, Kiarna earned: $5,700 from a part-time sales job (no PAYG deducted); and $8,030 from a family trust created by her parents.

Calculate Kiarna's taxable income and tax payable for the year ended 30 June 2018. Note this is a question about taxation of minors' income and not a trust question.

Discuss who will be liable to pay the income tax on the trust distribution (consider S98, ITAA36); and would your answer be different at 4.1 if Kiarna had left school and was in full time employment?