My query relates to Capital Gains distribution in a family trust.
Have 3 beneficiaries who are presently entitled and could receive a distribution of CG in the 20/21 year.
A – earns $3000 in the year.
B – earns $50,000.
C – is a foreign resident for tax purposes (no earnings here).
Could you please show what would be the likely tax payable on $30,000 CG distribution made to each beneficiary?
Firstly, we assume the $30k distribution has taken into account the CGT individual 50% discount.
Also, that we are dealing with adults.
A – will pay very little tax but take $2,392 as a guide – if a senior Australian this figure could be less.
B – will pay $10,350 on the distribution (at the 32.5% marginal rate plus 2% Medicare).
C – will pay $9,750 tax at a non-resident flat rate of rate of 32.5%.