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In Australia, if there are a few beneficiaries and the solicitor who is give an absolute discretion as a trustee

decided to distribute 20% of the net income for the financial year to one of the beneficiaries, is this beneficiary:

  1. taxed on 20% only,
  2. taxed on full net income or
  3. not entitled to tax as he is not presently entitled


Could you please answer this question with some explanations? Thanks.

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