By Troy Palmer, Partner, Craig Gibson, Partner, Stuart O’Neill, Special Counsel, and Ciara Broccardo, Paralegal
After more than a decade in development, Queensland has enacted a major reform to its trust law with the passing of the Trusts Act 2025 (Qld) (the Act). The Act received Royal Assent on 19 May 2025 and will commence on a date yet to be fixed by proclamation.
The new legislation replaces the Trusts Act 1973 (Qld) and represents the most substantial update to Queensland’s trust law in over 50 years. Its purpose is to modernise and simplify the old framework by removing outdated provisions, adopting contemporary drafting, and introducing rules that better reflect current trust practices. Importantly, the Act enhances the powers and duties of trustees, increases protections for beneficiaries, and provides more streamlined mechanisms for resolving disputes in the administration of trusts.
1. Expanded Definitions
The Act clarifies and broadens the following key concepts:
2. Trustee Powers
Trustees now have all the powers of an absolute owner of trust property, subject only to their fiduciary duties and the trust deed. This is a major shift from the previous, more restrictive regime.
Importantly, trustees may now delegate their investment powers. The delegation must:
Although trustees remain liable for the acts of their delegates, this flexibility is a significant change.
3. Codified Trustee Duties
For the first time, trustee duties are clearly set out in legislation. Trustees must:
Professional trustees and those holding themselves out as having specialist expertise are held to a higher standard of care. Records must be kept for at least three years after the trust ends.
4. Trustee Eligibility and Replacement
The Act places restrictions on who can serve as a trustee. A person cannot be appointed if they are:
Appointment and replacement processes have also been simplified. Attorneys or administrators may now appoint replacement trustees for incapacitated individuals, and insolvent trustees may appoint replacements where no one else is available.
5. Remedies for Wrongful Distributions
Beneficiaries can now pursue remedies directly against recipients of wrongly distributed trust property, rather than first exhausting claims against the trustee. This change applies retrospectively, provided proceedings had not already commenced before the Act took effect.
6. Courts and Dispute Resolution
The District Court has been given new jurisdiction, making it easier and more affordable to resolve disputes. Courts can now appoint or remove trustees, disqualify trustees for serious breaches, and approve the appointment of more than four trustees. For charitable trusts, the Attorney-General can approve certain amendments (cy-près applications) where the trust’s value is within District Court limits.
7. Beneficiary Protections
The Act strengthens the position of beneficiaries by expanding the financial support available to them and by improving the oversight of trustee conduct. Where a beneficiary is presumptively entitled to capital, for example, under a testamentary trust with an age qualification, trustees may now advance up to $100,000 for that beneficiary’s maintenance, education, or advancement. This represents a major increase from the previous $2,000 limit, though any advance remains subject to restrictions and cannot exceed half of the beneficiary’s presumptive share of the trust capital.
In addition to greater financial flexibility, the Act enhances transparency and accountability. Beneficiaries now have clearer rights to access trust records, while courts have been given new powers to review and, if necessary, reduce excessive remuneration and commissions charged by trustees. These reforms ensure that the interests of beneficiaries are better protected, while keeping trustee conduct subject to proper oversight.
The Act creates a new baseline of powers and duties. Trust deeds can still provide for broader powers, but they cannot override the minimum standards in the Act.
Trustees should review their deeds, update governance practices, and ensure they are meeting the new statutory duties. They should also check trustee eligibility and review succession arrangements.
Beneficiaries should familiarise themselves with their strengthened rights, including access to records and the higher advancement threshold.
Advisors should work closely with clients to ensure compliance, consider deed amendments where necessary, and take advantage of the new flexibility.
The Act is a landmark reform that reshapes how trusts are run in Queensland. Trustees have broader powers but also stricter duties, while beneficiaries enjoy greater protections and rights. Now is the time for all parties to review their deeds and trust arrangements to ensure they are aligned with the new rules and to take advantage of the increased flexibility the Act provides.
For tailored advice on reviewing your trust deed, updating trustee arrangements, or understanding how the new Trusts Act may affect your trust, please contact our Private Advisory team.
If you would like further information or have any queries regarding other matters, please do not hesitate to contact:
