Raytok is a resident company that acts as trustee of the Brown Family Trust. The

following transactions occurred during the year in relation to the trust:

Rental income from a Sydney property $60,000

Allowable deductible expense in relation

to the Sydney property $10,000

Unfranked dividends $18,000

Franked dividends $10,000

Interest $2,550

There are three beneficiaries of the Brown family trust;

Julie resident and aged 50

Mason resident and aged 14

Goff Co. non-resident company

On the 30 June 2016, Raytok, in accordance with the trust deeds, resolves to

distribute 25% of the trust income to each of the three beneficiaries. No resolution is

made with regards to the remaining 25%. The trust deed does not provide for any of

the beneficiaries to be specifically entitled to any income of the trust.

Required:

(a) Calculate the s95 net income from the trust for the 2015/16 tax year.

(5 marks)

(b) Advise each of the beneficiaries of the tax implications of their trust

distributions.