The Alberts Family Trust, an inter vivos trust, had the following beneficiaries: Candy (aged 45; entitled to 40% of trust income)

Dandy (aged30; bankrupt; entitled to 35% of trust income)

Landy (aged 17; entitled to 20% of trust income)

The remainder of each year's income was to be retained or distributed at the Trustee's discretion. During the CIY Tax year trust income was $195 000. A discretionary amount of $7 000 was paid to Landy. This amount was in addition to Lady's entitlement under the Trust Deed. The trust also had losses of $15 000 in the PIY tax year. These were to be met out of the trust income. Landy also received interest of $38 000 during the CIY tax year from investments given to him by his parents. Landy is single and is not covered by private health insurance

covering all beneficiaries) nominating:

Name of beneficiary

Whether or not the beneficiary is PRESENTLY ENTITLED

Whether or not the beneficiary is under a LEGAL DISABILITY

Which sections of the Act apply to make the income assessable

Who is ASSESSED on each amount

The amount retained or distributed

2) Calculate tax payable by the trustee

3) Calculate tax payable by Landy