LodgeiT automatically flags Capital Gain distributed from the trust to a non-resident beneficiary as  taxable per the current tax law regarding non-resident trust distributions.

The recent Australian Taxation Office (ATO) rulings clarify that capital gains distributed by an Australian family (discretionary) trust to non-resident beneficiaries are generally subject to Capital Gains Tax (CGT), even if the underlying asset is a non-Taxable Australian Property (non-TAP). This means that the capital gain your client received, despite being a non-resident, is considered taxable under current regulations and should be treated as such in tax software.

See this guide - https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/business-partnership-and-trust-income/tax-on-trust-distributions-to-non-resident-beneficiaries

Related guide: How to Distribute Capital Gain from TRT Form to Beneficiary (ITR Form)?