Queensland’s New Trusts Act 2025: What Trustees & Beneficiaries Should Know

Queensland has introduced a significant reform to its trust laws with the Trusts Act 2025 (Qld) (the Act), which will replace the long-standing Trusts Act 1973 (Qld). The Act has received Royal Assent, with the Attorney-General indicating an intended commencement of 28 April 2026, subject to proclamation.

The new Act modernises and simplifies the legal framework governing trusts, introduces clearer rules for trustees, and strengthens protections for beneficiaries.

For individuals and businesses operating through trust structures, it is important to understand how these changes may affect existing arrangements.

Key Takeaways

The new Act replaces legislation that has been in place for over 50 years
Trustees now have broader powers, including powers equivalent to an absolute owner of trust property
Trustee duties are now expressly set out in legislation
Trustees can delegate certain functions, including investment decisions
There are new rules around who can act as a trustee and how trustees are appointed or replaced
Beneficiaries have stronger rights, including access to trust information
New remedies are available where trust property is wrongly distributed
Existing trusts may also be affected and should be reviewed

Trustee Powers: A More Flexible Approach

One of the most significant changes is the expansion of trustee powers. Under the new Act, a trustee has all the powers of an absolute owner of the trust property, subject to their fiduciary duties and any contrary terms of the trust deed.

This represents a shift away from the more restrictive approach under the previous legislation, where trustee powers were often confined to specific statutory provisions or the wording of the trust instrument.

The Act now allows trustees to delegate certain functions, including investment decisions, to another person. This represents a change from the previous position, where delegation of investment functions was not expressly provided for. These arrangements must be properly documented and are subject to conditions, including limits on duration and requirements for notice. Importantly, trustees remain responsible for the actions of any delegate.

Trustee Duties: Now Clearly Defined

The Act sets out a core set of minimum trustee duties in statutory form. These include obligations:

to act honestly and in good faith;
to act in the best interests of beneficiaries (or for the purposes of the trust in the case of charitable trusts); and
to exercise reasonable care, diligence and skill in administering the trust.

These duties are not entirely new. They largely reflect obligations that have long existed under general law and equity, but are now clearly expressed in legislation. This provides greater certainty and makes it easier to identify when a breach may have occurred.

The Act also introduces a clear obligation to maintain proper trust records and accounts. Those records must be retained for at least three years after the trust ends and made available to beneficiaries for inspection and copying on request.

Trustees who hold themselves out as having specialist expertise may be held to a higher standard, broadly consistent with what would be expected of a prudent person managing the affairs of others.

Trustee Eligibility and Administration

The Act introduces clearer rules about who may act as a trustee. Certain persons, including minors, individuals who are insolvent under administration, and some disqualified corporate entities, are no longer eligible to be appointed.

This represents a shift from the previous legislation, which did not set out the same level of clarity in relation to trustee eligibility.

The legislation also simplifies the processes for appointing and replacing trustees. In particular, it expands the circumstances in which a trustee may be replaced, including where a trustee becomes insolvent, is disqualified, or where a corporate trustee ceases to operate.

There are also clearer mechanisms for dealing with situations where a trustee loses capacity or becomes unable to act. In some cases, attorneys or administrators may appoint a replacement trustee, reducing the need for court involvement. The Act also provides fallback mechanisms where no appointor is available or willing to act.

These reforms are designed to make trust administration more efficient and reduce the risk of delays or deadlock.

Beneficiary Rights and Protections

The Act strengthens the position of beneficiaries in several respects.

One of the more significant changes is the increase in the amount that may be applied for a beneficiary’s maintenance, education or advancement. Where a beneficiary has an existing or expected entitlement to trust capital, a trustee may now advance up to $100,000 from that capital, or up to one-half of the beneficiary’s interest, whichever is less. This is a substantial increase from the previous $2,000 limit.

The Act also introduces greater oversight of trustee conduct. Courts now have power to review and, if necessary, reduce excessive remuneration and commissions charged by trustees.

Together, these changes provide greater flexibility in supporting beneficiaries while improving oversight of trustee conduct.

Remedies for Wrongful Distribution

The Act introduces a new approach where trust property has been wrongly distributed. A person with a claim in relation to the trust may now be able to pursue a remedy directly against the recipient of the trust property, rather than first exhausting remedies against the trustee.

This change applies retrospectively in certain circumstances and may alter how disputes are approached, particularly where trust assets have already been transferred to third parties.

Courts and Dispute Resolution

The role of the courts in supervising trusts has been expanded under the new Act. In addition to the Supreme Court, the District Court now has jurisdiction in certain trust matters, providing a more accessible and cost-effective forum for resolving disputes.

The courts have also been given clearer and broader powers to support the proper administration of trusts. This includes the ability to appoint or remove trustees where it is otherwise difficult or impractical to do so, and to disqualify trustees who have committed serious breaches of trust. These powers are intended to address situations where existing appointment mechanisms have broken down or are unable to operate effectively.

These changes are intended to streamline dispute resolution, reduce the need for complex court processes, and address gaps in the previous legislation.

When to Seek Advice

The new Act will apply to many existing trusts, not just those created after its commencement. As a result, trustees and beneficiaries should consider whether current practices comply with the updated requirements and whether any changes to trust deeds or governance arrangements may be appropriate.

It may be appropriate to seek legal advice where:

you act as a trustee and want to ensure compliance with the new Act;
you operate an investment or business structure through a trust;
you are reviewing or updating a trust deed; or
there is a dispute involving the administration of a trust.

Early review can help avoid issues and ensure trust structures continue to operate effectively.

Should you require advice in relation to trustee obligations, reviewing or updating a trust deed, or resolving a dispute involving a trust, please do not hesitate to contact our team.

Call (07) 5532 3199 or submit an online enquiry.