Trust Distribution Calculator
Got a discretionary (family) trust? Enter the net income to distribute, split it across your beneficiaries, and we'll estimate the tax each one pays at their marginal rate, plus the total family tax bill so you can compare scenarios before 30 June.
Enter a trust income amount and a split to see your estimate.
Want the split that legally minimises family tax (and a resolution signed before 30 June)? That is our day job.
Plan my trust distribution →General information only, current for the 2025-26 financial year. This estimate applies resident marginal rates and a flat 2% Medicare levy. It ignores the Medicare levy surcharge, the low-income tax offset, Division 7A, franking credits, minors taxed at penalty rates under Division 6AA, section 100A reimbursement-agreement rules, and trustee assessments, and it is not personal tax advice. Distributions must be supported by a valid trust deed and a resolution made by the trust's distribution deadline. For a position you can rely on, talk to us.
A Few Things This Calculator Assumes
Why split income across beneficiaries at all?
A discretionary trust lets the trustee decide who receives the income each year. Because Australia has progressive tax rates, spreading income across family members who are on lower marginal rates can reduce the total tax the family pays, compared with one person being taxed on the lot. The trick is doing it within the rules, with a valid deed and a resolution made in time.
How is each beneficiary taxed?
Each beneficiary adds their share of the trust income to their other income for the year and is taxed at their own marginal rate. We work out the tax on their other income, then the tax on their other income plus the distribution, and the difference is the tax caused by the distribution. We add a flat 2% Medicare levy if you tick the box.
What about distributing to kids or a company?
This calculator assumes every beneficiary is an adult individual on ordinary resident rates. Minors (under 18) are taxed at penalty rates on most trust income under Division 6AA, and a corporate beneficiary (a bucket company) is taxed at the company rate but brings in Division 7A and unpaid present entitlement rules. Those scenarios need proper advice, which is exactly what we do.
Is there a deadline?
Yes. The trustee generally must resolve who gets the income by 30 June (or the date in the deed). If no valid resolution is made, the trustee can be assessed on the whole net income at the top marginal rate of 45% plus Medicare levy, which usually wipes out any benefit. We make sure the paperwork is done and signed on time.
Make the Right Call Before 30 June
Book a 30-minute call with a senior accountant. We'll model the distribution that minimises your family's tax, check your deed allows it, and prepare the resolution so it stands up.
Free · No lock-in · 2-hour reply guarantee