Queensland is set to implement its most significant reform to trust law in more than 50 years.
The Trusts Act 2025 (Qld), is set to commence on 28 April 2026 and will replace the long-standing Trusts Act 1973 (Qld) and introduce a modern statutory framework governing the administration of trusts. For those holding property through trust structures, the reform is not merely procedural—it represents a substantive shift in how trusts operate, how trustees exercise power, and how legal risk is allocated.
Trusts remain a cornerstone of property ownership in Queensland, widely used for asset protection, tax structuring, and intergenerational wealth planning. The significance of this reform lies in its breadth: it applies to both new and existing trusts, with limited scope for exclusion.
A Modern Framework with Immediate Impact
The new Act is designed to align trust law with contemporary commercial practice. It introduces a more structured and accessible regime governing trustee powers, duties, and the rights of beneficiaries.
Importantly, its application to existing trusts means that property-holding structures already in place will automatically be subject to the new framework upon commencement. This represents a clear shift away from reliance on historical drafting and towards a more standardised statutory model.
From Deed Control to Statutory Control
One of the most significant changes is the recalibration of the relationship between trust deeds and legislation.
Where a trust deed is inconsistent with the Act—particularly in relation to trustee duties—the statutory provisions will prevail. While some flexibility remains where the legislation expressly permits modification, many obligations will be mandatory.
In practical terms, this may mean:
- existing trust deeds do not operate as originally intended
- asset protection mechanisms require reassessment
- discretionary powers may be more limited than anticipated
This shift is particularly relevant for property investors relying on tailored trust structures.
Broader Powers, Coupled with Mandatory Duties
The Act grants trustees powers broadly equivalent to those of an absolute owner of trust property. For property transactions, this is likely to improve efficiency and reduce reliance on highly prescriptive drafting.
However, this expanded authority is balanced by clearly defined, non-excludable duties. Trustees must act honestly, in good faith, and in the best interests of beneficiaries, while exercising reasonable care and diligence.
The practical effect is twofold:
- trustees have greater flexibility in dealing with property assets
- trustees face increased accountability and potential liability
This is particularly important where trustees are actively managing or developing property portfolios.
Transparency and the Risk of Disputes
The Act strengthens beneficiary rights by expanding access to trust information, including financial records and aspects of administration.
While this promotes transparency, it also introduces a higher likelihood of scrutiny. In property contexts, where decisions often involve significant financial considerations, trustees will need to ensure that their decision-making is properly documented and defensible.
Over time, this shift may lead to increased disputes in family or closely held investment structures.
Trustee Succession and Transactional Certainty
The legislation introduces clearer statutory mechanisms for appointing and removing trustees, particularly where trust deeds are silent or ineffective. Courts are also given broader powers to intervene.
For property transactions, this provides greater certainty. Issues around trustee authority can delay or complicate dealings with land, and a more structured framework reduces this risk while supporting continuity in long-term holding arrangements.
Practical Implications for Property Owners and Investors
For those using trusts to hold or manage property, the Trusts Act 2025 presents both opportunity and risk.
The modernisation of trustee powers may streamline transactions. At the same time, the introduction of mandatory duties and statutory overrides may affect asset protection strategies and increase exposure to liability.
The key takeaway is straightforward: existing trust deeds should no longer be assumed to fully govern the structure. Their interaction with the new Act must be carefully reviewed.
Preparing for Commencement
With the commencement date approaching, property owners and trustees should begin reviewing their structures now, particularly where transactions are anticipated.
As a starting point, attention should be directed to:
- whether the trust deed aligns with the new statutory framework
- the scope of trustee powers and any limitations on liability
- succession and appointor arrangements
- governance and record-keeping practices
Failing to address these issues before the Act takes effect may lead to unintended legal and commercial consequences.
Conclusion
The Trusts Act 2025 (Qld) represents a fundamental shift in the legal framework governing trusts in Queensland. It modernises and clarifies the law, but also reduces the flexibility historically afforded by trust deeds.
For property owners and investors, the reform underscores the importance of proactive legal review. As the balance moves from private drafting to statutory regulation, ensuring that trust structures remain effective, compliant, and commercially sound will be critical.
If you hold property through a trust or are considering restructuring, now is the time to review your arrangements.
NB Property Law can assist with assessing your trust structure and ensuring it remains effective under the new legislative framework.