Alistair Has a Discretionary Trust and This Last Year (2020);

Alistair has a discretionary trust and this last year (2020) ; he has distributed $10,000 of the trust net income to his 8 year old son. At what rate of tax will this income distributed to the 8 year old son be taxed?

A) At ordinary marginal rates
B) At a flat rate of tax equal to the company tax rate
C) At Division 6AA rates (top marginal rate plus Medicare levy)
D) No tax will apply as the amount is below the tax-free threshold

Correct Answer:

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