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Rick and Gail Turner have several investment properties that derive rent which are owned and operated by the Turner Family Trust.  Rick and Gail also conduct a financial planning business from which they each earn a salary of $145,000.

 

During the year ended 30 June 2015, the net income of the trust was $64,573.  Rick and Gail have six daughters who live with them:

Ruby, aged 21, who works full-time  at a local restaurant and earned wages of $70,000
Bella, aged 23, who works part-time and earned wages of $25,000
Melitta, aged 17, who derived income of $69,000 from her work as a full-time jockey
Isabella, aged 16, who attends school and has no other income
Tayla, aged 15, also at school but in receipt of $69,000 from part time modelling and television commercials
Hanna, aged 13, who lost the use of her legs in a traffic accident.      Hanna has no other income.      Means testing prevents the Turners from receiving a carer's allowance for her.
The trust deed states that all trust income may be either distributed or retained at the discretion of the Trustee.

Each daughter is covered by private health insurance.

 
Required:

In order to minimise tax on the trust income, who should the Trustee distribute income to, why should they receive it and how much should each beneficiary receive? (in particular, consider the operation of Div 6AA).  The family does not wish any of the trust income to be taxed at an effective rate higher than necessary.

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