Trusts Act 2025 (Qld): A Complete Guide to Queensland’s New Trust Laws

Key Takeaways

• The Trusts Act 2025 (Qld) commences on 28 April 2026 and will govern all Queensland trusts, including those created before commencement.
• The new Act overrides contrary provisions in trust deeds (a reversal of the old position), meaning minimum statutory duties cannot be contracted out of.
• New minimum duties of care, honesty and good faith, record keeping and beneficiary information rights apply to all trustees regardless of what the trust deed says.
• Beneficiaries gain enhanced rights including direct action against third parties who wrongfully receive trust property and the ability to challenge excessive trustee remuneration.
• Trustees receive expanded powers equivalent to those of an absolute owner, a modernised investment framework and new delegation powers.
• Existing trust deeds do not need to be rewritten but should be reviewed against the new mandatory provisions before commencement.

1. 1.Who Does This Affect?
2. 2.Why Has Queensland Replaced the Trusts Act 1973?
3. 3.The Act Now Overrides Trust Deeds (A Major Reversal)
4. 4.How the New Act Applies to Existing Trust Deeds
5. 5.New Minimum Duties for All Trustees
6. 6.Trustee Powers: All the Powers of an Absolute Owner
7. 7.Investment Powers and Delegation
8. 8.Capital Advancement Threshold Increased
9. 9.Who Can Be a Trustee? New Eligibility Rules
10. 10.Enhanced Beneficiary Rights
11. 11.Charitable Trusts: Expanded Cy Pres Doctrine
12. 12.Court Powers Expanded
13. 13.Variation of Trusts and Protective Trusts
14. 14.Perpetuity Period Extended to 125 Years
15. 15.What Should Trustees and Advisors Do Now?
16. 16.How Astris Law Can Help

Queensland’s trust laws are about to undergo their most significant overhaul in more than 50 years. The Trusts Act 2025 (Qld) was passed on 1 May 2025 and will repeal and replace the Trusts Act 1973 (Qld) when it commences on 28 April 2026.

The Attorney-General and Minister for Justice and Minister for Integrity intends to ask the Governor to proclaim 28 April 2026 as the commencement date. From that date, every Queensland trust (whether created before or after commencement) will be governed by the new Act.

This guide breaks down the key changes trustees, beneficiaries and their advisors need to understand before the new law takes effect.

Who Does This Affect?

Trusts are one of the most widely used legal structures in Australia, and the reach of this legislation is broad. The new Act will affect:

• Family and discretionary trusts commonly used for tax planning, asset protection and intergenerational wealth transfer
• Unit trusts and trading trusts used as commercial investment vehicles and joint venture structures
• Testamentary trusts established under wills
• Self managed superannuation fund trusts
• Charitable trusts and foundations
• Property trusts used in development and investment
• Corporate trustee structures used in business operations

In practical terms, the changes will be relevant to individual trustees, corporate trustees, accountants, financial planners, estate planners, property developers and anyone who advises on or administers trust structures in Queensland. If you are involved with a trust in any capacity, this legislation applies to you.

Why Has Queensland Replaced the Trusts Act 1973?

The Trusts Act 1973 was drafted at a time when trusts were used in a narrower range of circumstances than they are today. Over the past five decades, trusts have become the backbone of Australian wealth structuring, tax planning and commercial dealings. The old legislation simply did not keep pace.

In 2012 and 2013, the Queensland Law Reform Commission conducted a comprehensive review of the old Act, producing a Discussion Paper, an Interim Report and a Final Report with a draft Bill. The review identified significant gaps and shortcomings: the Act lacked prescribed minimum duties for trustees, beneficiary protections were inadequate, investment provisions were outdated and the legislation did not reflect modern trust administration practices.

Other jurisdictions had been grappling with similar issues. In Victoria, the Law Reform Commission published a 2015 report on trading trusts and oppression remedies, highlighting that unitholders in trading trusts had significantly fewer protections than shareholders in companies. Where minority shareholders could access statutory oppression remedies under the Corporations Act 2001 (Cth), unitholders in equivalent trust structures were left with limited and often inadequate equitable remedies. The fraud on power doctrine, for example, was far less flexible than the corporate oppression remedy. These concerns about investor protection gaps in trust structures formed part of the broader national conversation that informed Queensland’s reform.

The result is a substantially larger piece of legislation. The old Act’s 128 sections have been replaced by 310 new provisions across 19 Parts, providing far greater detail and clarity on the rights and obligations of trustees, beneficiaries and the courts.

The Act Now Overrides Trust Deeds (A Major Reversal)

One of the most significant (and easily overlooked) changes is the reversal of the relationship between the Act and trust instruments.

Under the old Act, the legislation generally gave way to contrary provisions in the trust deed. The new Act takes the opposite approach. Section 3(2) provides that the Act applies despite a contrary intention in any trust instrument, except to the extent the Act itself provides otherwise.

Settlors can still confer additional or greater powers on trustees beyond those in the Act (section 3(3) to (4)). However, the minimum standards and core duties in the new Act cannot be contracted out of. This is a fundamental shift.

How the New Act Applies to Existing Trust Deeds

A common question is whether existing trust deeds need to be rewritten. The short answer is: not necessarily, but they do need to be reviewed.

Section 3(1) makes the Act apply to all trusts, whether created before or after commencement. This means the new Act has retrospective effect in the sense that it governs all existing trusts from 28 April 2026 onwards, not just trusts created after that date.

However, Part 17 of the Act contains over 90 transitional provisions designed to manage the interaction between the old and new legislation for existing arrangements. These provisions take a practical approach:

• Existing trustee appointments that were valid under the old Act are not disturbed by the new eligibility restrictions in section 13 (section 223)
• Where a trust lawfully had more than four trustees before commencement, it may continue to do so under the old rules (section 224)
• Capital advances paid before commencement are counted towards the new thresholds but are not retrospectively invalidated (section 266)
• Existing court proceedings continue under the provisions that applied when they were commenced
• Mortgage estates already vested in the public trustee remain governed by the old provisions (section 238)

So the transitional provisions generally protect existing arrangements from being retrospectively undone. What they do not do is exempt existing trusts from the new minimum duties, the new override framework or the expanded court powers going forward. From commencement, the duty of care in section 62, the duty of honesty and good faith in section 63, the record keeping obligations in section 64 and the beneficiary information rights in section 65 will all apply to existing trusts.

The practical implication is this: trust deeds do not need to be torn up and rewritten, but they should be reviewed against the new mandatory provisions. Clauses in older trust deeds that purport to exclude or limit statutory duties may no longer be effective. Exculpation clauses that previously shielded trustees from liability for anything short of wilful default may now be overridden by the Act’s minimum standards. Investment clauses that restrict trustee powers below the new statutory baseline will be supplemented by the Act’s broader provisions. Trustees and their advisors should identify any provisions in existing trust instruments that conflict with the new mandatory requirements and consider whether amendments are desirable, even if not strictly required.

New Minimum Duties for All Trustees

The old Act did not prescribe detailed statutory duties for trustees. The new Act introduces a tiered framework of minimum duties that apply regardless of what the trust deed says.

Duty of care, diligence and skill

The Act now distinguishes between three categories of trustee when it comes to the standard of care:

Section 60 applies to professional trustees, who must exercise the care, diligence and skill that a prudent person engaged in their profession, business or employment would exercise in managing the affairs of other persons. This is a heightened standard that reflects the expertise these trustees hold themselves out as having.

Section 61 applies to non-professional trustees who have, or hold themselves out as having, special knowledge or experience relevant to administering trusts. They are held to the standard of a prudent person who has the same special knowledge or experience. If you hold yourself out as having relevant expertise, you will be judged accordingly.

Section 62 is the baseline standard for all other trustees: the care, diligence and skill that a prudent person would exercise in managing the affairs of other persons.

Duty to act honestly and in good faith

Section 63 imposes a duty on all trustees to act honestly and in good faith for the benefit of the beneficiaries, or (in the case of a charitable trust) for the purposes of the trust.

Duty to keep accounts and records

Section 64 requires trustees to keep accurate accounts and records for the trust and to retain those records for at least three years after the trust terminates. Where a person is trustee of more than one trust, separate records must be maintained for each.

Beneficiary information rights

Section 65 gives beneficiaries a right to request information about the trust from the trustee. If the trustee refuses to provide the information, the beneficiary may apply to the court for an order compelling disclosure.

Trustee Powers: All the Powers of an Absolute Owner

Section 82 confers on a trustee all the powers of an absolute owner of the trust property, subject to the trustee’s fiduciary duties and any contrary express terms in the trust instrument.

This is a significant expansion. Under the old Act, trustee powers were more restrictive and did not extend to the full powers of ownership. The new provision includes (without limitation) powers to sell, lease, mortgage, deal with securities, settle debts, insure the property, carry on a business or borrow money.

The practical effect is that trustees will generally have broad authority to deal with trust property as they see fit, provided they comply with their duties under the Act and the terms of the trust instrument.

Investment Powers and Delegation

Modernised investment framework

Part 6 of the Act overhauls the investment provisions. The Act imposes a tiered duty of care for investment decisions mirroring the general duty framework: professional investors are held to a higher standard (section 67), while all trustees must exercise the care of a prudent person (section 69).

Section 71 requires trustees to have regard to a range of matters when exercising investment powers, including the purposes of the trust, the need for diversification, the risk of capital losses, the expected return and tax consequences.

Delegation of investment powers

Section 76 introduces a new power for trustees to authorise another person to exercise their investment powers. This was not expressly provided for under the old Act. However, trustees remain responsible for the actions of any delegate, and the delegation must be properly documented.

Court consideration of investment strategy

Sections 80 and 81 provide important protections. In proceedings for breach of trust relating to investments, the court may take into account whether the trustee formulated and followed an investment strategy, and may set off gains against losses across the trust’s investment portfolio. This gives trustees a strong incentive to document their investment strategy, as it provides a degree of protection in the event of a claim.

Capital Advancement Threshold Increased

Section 128 allows trustees to pay or apply trust capital for a beneficiary’s maintenance, education or advancement. The threshold has been increased to the greater of $100,000 or one half of the beneficiary’s entitlement to the relevant capital. Under the old Act, this cap was significantly lower.

The $100,000 figure is also CPI adjusted, meaning it will increase over time. The court retains the power to authorise payments above this threshold.

Who Can Be a Trustee? New Eligibility Rules

Section 13 now expressly provides that the following persons cannot be appointed as a trustee:

• A person who is under 18 years of age
• A person who is insolvent under the Bankruptcy Act 1966 (Cth) or an insolvent company
• A person disqualified from appointment by court order under section 168

The court also has a new power under section 168 to disqualify a person from being appointed as a trustee for a stated period.

Section 14 limits the number of trustees of a particular trust to four, unless the court approves otherwise under section 15. Custodian trustees, charitable trusts and SMSF trusts are excluded from this limit.

Replacement of incapacitated sole trustees

Section 22 introduces a practical solution where a sole remaining trustee develops impaired capacity. The trustee’s administrator or attorney under an enduring power of attorney may appoint a replacement trustee (including themselves) without the need for a court application. Under the old Act, this situation often required an expensive court process, which was particularly burdensome for smaller family trusts.

Enhanced Beneficiary Rights

The new Act strengthens the position of beneficiaries in several ways. This is one of the areas where the gaps in the old legislation were most keenly felt, particularly in commercial trust structures where unitholders and beneficiaries lacked the kinds of statutory protections available to shareholders under the Corporations Act.

Direct action against third parties

Section 143 removes the previous requirement for a beneficiary to exhaust all remedies against the trustee before pursuing a third party who has wrongfully received trust property. Beneficiaries can now proceed directly against the recipient. This is a significant practical improvement: under the old rules, a beneficiary could be forced to pursue lengthy and costly proceedings against an uncooperative or impecunious trustee before being permitted to recover trust property from the person who actually held it.

Review of excessive trustee remuneration

Section 161 enables beneficiaries to apply to the court to review and reduce excessive amounts charged by a trustee for commission and professional charges. This provides a check against overcharging that was not clearly available under the old Act.

Professional trustee remuneration

Section 159 entitles professional trustees (where the trust instrument is silent on remuneration) to charge their professional fees from trust property. The court can also authorise remuneration under section 160.

Charitable Trusts: Expanded Cy Pres Doctrine

Part 12 modernises the charitable trust provisions. The circumstances in which the purposes of a charitable trust can be changed under the cy pres doctrine have been expanded (section 199). Importantly, purposes can now be changed where the existing charitable purpose can no longer be achieved due to prevailing social and economic conditions. This is a welcome update: under the old law, charitable trusts could become effectively moribund where their original purposes had become impractical but did not technically “fail” in the narrow legal sense.

The Act also introduces a new pathway allowing the Attorney-General (not just the court) to approve cy pres schemes (sections 202 to 210), with a formal application and public notice process. This should make it simpler and cheaper for trustees of smaller charitable trusts to vary the trust’s purposes without the cost of a Supreme Court application.

Court Powers Expanded

Part 11 gives the court significantly broader jurisdiction. Key additions include:

• Section 166 gives the court power to appoint and remove trustees if it is expedient to do so, and section 168 gives the court power to disqualify persons from appointment as trustees for a stated period.
• Section 169 empowers the court to order the removal and replacement of office holders appointed under the trust, such as appointors and protectors. This is new territory for Queensland trust legislation.
• Section 163 broadens the class of persons who may apply for orders relating to trusts and trust property.
• Section 155 gives the court power to relieve trustees from personal liability for breach of trust where the trustee acted honestly and reasonably.

Variation of Trusts and Protective Trusts

Part 15 sets out the framework for court approved variations of trusts, including detailed provisions for protective trusts (section 182 onwards). A protective trust is one where income is held for a principal beneficiary, with provision for the trust to shift to a discretionary arrangement if a specified event occurs.

Perpetuity Period Extended to 125 Years

While not strictly part of the Trusts Act 2025 itself, section 201 of the Property Law Act 2023 (Qld) sets a fixed statutory perpetuity period of 125 years (up from the previous maximum of 80 years). This means a trust can operate for up to 125 years before the trust property must be distributed. For families and businesses engaged in long term wealth planning or intergenerational structuring, this is a significant extension.

What Should Trustees and Advisors Do Now?

With commencement expected on 28 April 2026, there are several practical steps to take:

1. Review existing trust deeds against the new mandatory provisions, particularly the minimum duties in Part 5, the override framework in section 3 and the investment requirements in Part 6. Identify any clauses that may conflict with the new Act.
2. Check trustee eligibility. Ensure all current and proposed trustees satisfy the new eligibility requirements in section 13.
3. Establish proper record keeping. The duty to keep accounts and records under section 64 is now a statutory obligation. Trustees who do not already maintain comprehensive records should implement systems before commencement.
4. Review investment arrangements. Consider whether current investment practices align with the new investment framework, including the requirement to formulate an investment strategy having regard to the matters in section 71.
5. Consider trustee remuneration. Professional trustees should review their charging arrangements in light of the new statutory entitlement under section 159 and the court’s power to review excessive charges under section 161.
6. Seek legal advice. The changes are substantial. Trustees, beneficiaries and advisors should obtain specific legal advice about how the new Act affects their particular trust arrangements.

How Astris Law Can Help

The Trusts Act 2025 represents the most significant reform to Queensland’s trust legislation in over half a century. Whether you are a trustee managing a family discretionary trust, a corporate trustee operating a commercial investment structure, an accountant advising clients with trust arrangements, or a financial planner managing trust investments, the new Act will affect your obligations and rights.

At Astris Law, we can assist with:

• Reviewing and updating trust deeds
• Advising on trustee duties and powers under the new Act
• Trust disputes and court applications
• Establishing compliant record keeping and governance frameworks

Contact us today to discuss how the new Trusts Act 2025 will affect your trust arrangements. Speak with Astris Law on (07) 3519 5616. See our corporate and commercial services.

This article is for general information purposes only and does not constitute legal advice. You should seek professional advice tailored to your specific circumstances before acting on any information in this article. Liability limited by a scheme approved under Professional Standards Legislation.