Rethinking Trusts in Queensland. Key reforms under the 2025 Act.

The Trusts Act 2025 (Qld) (2025 Act), assented to in May 2025, will commence on a date yet to be fixed by proclamation and will replace the Trusts Act 1973 (Qld) (1973 Act).  The 2025 Act aims to modernise and simplify trust legislation and address issues that have arisen since the enactment of the 1973 Act. It also enhances trustees’ powers and duties and streamlines dispute resolution mechanisms.

Changes include:

• Conferring all the powers of an absolute owner on trustees in respect of trust property, subject to trustees’ duties and any express terms in the trust deed.
• Introducing new minimum statutory duties for trustees, including a general duty of care, a duty to act honestly and in good faith, and a duty to keep accurate trust records and accounts and make them available to beneficiaries upon request. These statutory duties essentially reflect duties that already exist at common law.
• Updating delegation powers for situations where a trustee is temporarily absent from Queensland.
• Increasing the amount of capital that a beneficiary may receive for their maintenance, education or advancement.
• Simplifying the process for appointing trustees.

Trustees should familiarise themselves with their enhanced powers and duties, ensuring they administer trusts in accordance with the 2025 Act.  It is also important to remember to read the trust deed, as whilst it can confer broad powers on trustees, legislation may apply in the absence of specific provisions in the trust deed.

It is also worth noting that the perpetuity period for trusts (how long trusts can exist) will be extended from 80 years to 125 years when the Property Law Act 2023 (Qld) commences on 1 August.  This extended period will automatically apply to trusts created after 1 August, however existing trusts may only be able to extend the perpetuity period if the trust deed allows or if all adult beneficiaries agree.

Sparke Helmore can assist if you are considering extending the perpetuity date.