A family discretionary trust is where the beneficiaries are all predominantly family or related members of the same family and the trustee has full discretion which beneficiary gets which distribution portion of income or capital of the trust. (From How Discretionary Trust Works | Starting Family Trust ATO) I have been reading lots websites about family discretionary trust. My understanding is my taxable income can distribute to my family. For example, if I earn $100,000 in one year, I open a trust account and put $100,000 in to the trust. Then, I can distribute it to my father, mother and sister (they have $0 income) $25,000 each. We all pay lower tax rate. Am I right? Can anyone tell more details how dose Family discretionary trust work? Many thanks.