The Sutherland Family Trust (a discretionary trust) has derived the following income during the 2017 income year:
$14,000 fully franked dividend received from Australian listed companies $30,000 capital gain from sale of shares in Australian listed companies $15,000 interest on money deposited in an Australian bank account $15,000 interest on money deposited in a US bank account
Assume that the trust has the following beneficiaries:
Alice (resident) aged 50 with wage income of $200,000, deduction of 20,000 and capital loss of $35,000;
John (foreign resident) aged 19, no Australian assessable income and lives in the UK; Carmen (resident) aged 17 with a fulltime job and $36,000 annual income;
Tom (resident) aged 2, no income;
Mike (resident) aged 15, a full time student in local school with no other income.
Advise the trustee of the Family Trust how to distribute the net income of the trust for the year ended 2017 so as to minimise the income tax payable by all the parties.
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