The Trusts Act 2025 (Qld) officially commences today, 28 April 2026. This is the most significant reform to trust law in Queensland in over 50 years, replacing the Trusts Act 1973 (Qld) which has governed trusts in this state since before most current trust structures were established.
If you are a trustee, a beneficiary, a business owner operating through a trust, or an adviser to any of those people — this affects you. Here is what you need to know.
What Has Changed and Why
The Trusts Act 1973 was drafted when trusts were used in a far narrower range of circumstances than they are today. Over the past five decades, trusts have become the backbone of Australian wealth structuring, tax planning, asset protection and commercial dealings. The old legislation — just 128 sections — simply did not keep pace.
Following a comprehensive review by the Queensland Law Reform Commission in 2012–2013, the Queensland Parliament passed the Trusts Act 2025 on 1 May 2025. It received Royal Assent on 19 May 2025, and the Governor proclaimed 28 April 2026 as the commencement date. The new Act contains 310 provisions across 19 Parts — a substantially more detailed and modern piece of legislation.
Critically, the new Act applies to all Queensland trusts, whether created before or after commencement (section 3(1)). From today, every family trust, unit trust, testamentary trust, SMSF trust, charitable trust, property trust and corporate trustee structure in Queensland is governed by the new Act.
The Act Now Overrides Trust Deeds
This is arguably the single most important change for existing trust structures. Under the old Act, the legislation generally gave way to contrary provisions in the trust deed. The new Act reverses this position entirely.
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. While settlors can still confer additional or greater powers on trustees beyond those in the Act (sections 3(3) to 3(4)), the minimum standards and core duties in the new Act cannot be contracted out of.
This means 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.
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 to all trustees, regardless of what the trust deed says:
- Duty of care, diligence and skill: Section 62 sets the baseline standard — the care, diligence and skill that a prudent person would exercise in managing the affairs of other persons. Section 60 imposes a heightened standard on professional trustees, and section 61 applies an elevated standard to trustees who hold themselves out as having special knowledge or experience.
- Duty to act honestly and in good faith: Section 63 requires all trustees to act honestly and in good faith for the benefit of the beneficiaries, or for the purposes of the trust in the case of charitable trusts.
- Duty to keep records: Section 64 requires trustees to keep accurate accounts and records, and to retain them for at least three years after the trust terminates. Separate records must be maintained for each trust.
- Beneficiary information rights: Section 65 gives beneficiaries a right to request information about the trust. If a trustee refuses, the beneficiary may apply to the court for an order compelling disclosure.
These duties cannot be excluded by the trust deed — they represent the irreducible core of trustee obligations under the new Act.
Expanded Trustee Powers
While duties have been tightened, powers have been significantly expanded. Section 82 confers on a trustee all the powers of an absolute owner of the trust property, subject to fiduciary duties and any contrary express terms in the trust instrument.
This is a major expansion from the more restrictive powers under the 1973 Act. The new provision includes (without limitation) powers to sell, lease, mortgage, deal with securities, settle debts, insure property, carry on a business and borrow money. Trustees also now have broad power to postpone the sale of trust assets indefinitely (section 83) and to appropriate expenditure between income and capital (section 86).
The investment framework has been modernised under Part 6 of the Act, with section 71 requiring trustees to consider a range of matters when exercising investment powers — including diversification, risk of capital loss, expected return and tax consequences. Importantly, section 76 introduces a new power for trustees to delegate investment decisions, provided the delegation is properly documented.
Who Can Be a Trustee?
Section 13 introduces explicit eligibility restrictions. The following persons cannot be appointed as a trustee:
- A person under 18 years of age
- An individual who is insolvent under the Bankruptcy Act 1966 (Cth)
- A Chapter 5 body corporate (a company being wound up or under administration)
- A person disqualified from appointment by court order under section 168
The number of trustees is capped at four (section 14), unless the court approves otherwise. The court also now has the power to remove appointors and protectors nominated under a trust deed (section 169) — a power that did not exist under the old Act.
Importantly, section 22 provides a practical solution where a sole remaining trustee develops impaired capacity: their administrator or attorney under an enduring power of attorney may appoint a replacement trustee without the need for a costly court application.
Stronger Beneficiary Protections
The new Act significantly strengthens the position of beneficiaries:
- 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.
- Review of excessive remuneration: Section 161 enables beneficiaries to apply to the court to review and reduce excessive amounts charged by a trustee.
- Increased capital advancement: Section 128 allows trustees to pay or apply trust capital for a beneficiary’s maintenance, education or advancement up to the greater of $100,000 or one half of the beneficiary’s entitlement. This figure is CPI-adjusted.
Expanded Court Powers
The court’s supervisory role has been significantly expanded. Key developments include:
- The District Court now has jurisdiction in trust matters where the value of trust property is $750,000 or less — previously, only the Supreme Court had jurisdiction over trusts.
- Section 155 gives the court power to relieve trustees from personal liability for breach of trust where they acted honestly and reasonably.
- Section 168 allows the court to disqualify a person from being appointed as a trustee for a stated period — a powerful new disciplinary tool.
Transitional Provisions: What Happens to Existing Trusts?
Part 17 of the Act contains over 90 transitional provisions designed to manage the shift from old to new legislation. Existing trust deeds do not need to be rewritten, but they should be reviewed. Key protections include:
- Existing trustee appointments that were valid under the old Act are not disturbed (section 223)
- Trusts that lawfully had more than four trustees may continue under the old rules (section 224)
- Capital advances made before commencement are counted toward new thresholds but are not retrospectively invalidated (section 266)
However, from today, the new minimum duties (sections 62–65), the override framework (section 3(2)) and the expanded court powers all apply to existing trusts going forward.
Who This Affects
The reach of this legislation is broad. It affects:
- Family and discretionary trusts used for tax planning, asset protection and intergenerational wealth transfer
- Unit trusts and trading trusts used as commercial investment vehicles
- Testamentary trusts established under wills
- Self-managed superannuation fund trusts
- Charitable trusts and foundations
- Corporate trustee structures
If you are involved with a trust in any capacity — as trustee, beneficiary, appointor, protector, accountant, financial planner or business owner — the new Act applies to you from today.
What Trustees Should Do Now
- Review your trust deed against the new mandatory provisions — particularly clauses that limit trustee duties, exclude liability or restrict powers below the new statutory baseline.
- Check trustee eligibility — ensure all current trustees meet the requirements under section 13.
- Implement proper record-keeping — section 64 requires accurate accounts and records. If your trust record-keeping is informal, now is the time to formalise it.
- Prepare for beneficiary information requests — under section 65, beneficiaries have a statutory right to request trust information. Trustees should be ready to respond.
- Review investment arrangements — ensure investment decisions are documented and comply with the new framework under Part 6, including the requirement to consider diversification, risk and tax consequences (section 71).
- Take legal advice — the interaction between existing trust deeds and the new Act is complex, particularly given the override provisions in section 3(2). Professional advice is essential.
How Boss Lawyers Can Help
At Boss Lawyers, we regularly advise trustees, beneficiaries and business owners on trust law, commercial disputes and director and shareholder matters. The commencement of the Trusts Act 2025 creates both obligations and opportunities — and getting ahead of these changes is critical.
If you need advice on how the new Act affects your trust structure, your duties as a trustee, or your rights as a beneficiary, contact us today.
Call 1300 267 711 or get in touch online.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
Section numbers referenced in this article are sourced from the Trusts Act 2025 (Qld) as passed by Parliament on 1 May 2025 and published on the Queensland Legislation website.
Need Legal Advice on Trust Matters?
Boss Lawyers advises trustees, beneficiaries, and business owners on trust-related disputes and compliance. Our team is experienced in wills and estates matters and commercial law, including trust structures, trustee obligations, and breach of trust claims. Call 1300 267 711 to discuss your situation.
This is general information only and is not legal advice. You should obtain professional advice specific to your circumstances.
