Tom Tyler has been very successful in business. He has no wife or children. In 2011, with the aim of financially assisting his family, Tom decides to establish a discretionary trust for their benefit (the Tyler Trust). The trust deed was executed on 1 July 2011. Tom is designated trustee under the trust deed. The trust deed contains a provision allowing the trustee to treat capital gains as income. The trust deed names the following beneficiaries:

Tom's mother, Tania;

Tom's sisters, Tracey and Tammy;

Tammy's daughter, Taylor (born in 2008).

In the income year ended 30 June 2017, the Tyler Trust made a net capital loss of $150,000.

At the beginning of the 2018/2019 income year, the trust held the following property:

A large block of industrial land containing a factory, currently leased to XYZ Chemicals under a long-term lease, expiring 30 June 2026;

A large block of vacant land in the ACT.

In the income year ended 30 June 2019, the following occurred:

Rent of $90,000 was received from XYZ Chemicals;

The vacant land was sold to a developer on 1 May 2019 for $6,000,000. The land was purchased by Tom (in his capacity as trustee of the Tyler Trust) on 1 March 2013 for $5,500,000; lawyers' fees in relation to the purchase and sale amounted to $3,000. ACT stamp duty of $353,000 was also incurred on the purchase.

In the income year ended 30 June 2019, Tracey earned $30,000 from giving music lessons. Tammy works part time as a waitress; she derived salary and wages income of $23,000 and received $750 in tips. Taylor is still in school. Tania is retired, and her only taxable income was a net capital gain of $5,000 from her small share portfolio.

Required:

For the income year ended 30 June 2019, calculate the net income of the Tyler Trust and advise Tom how he can distribute the net income in the most tax effective way.

Your answer should include a statement of the taxable income and a calculation of the tax liabilities (if any) of the trustee and each of the beneficiaries.