Introduction to the Trusts Bill 2025 (Qld)

On 1 May 2025, the Trusts Bill 2025 (Qld) (Bill) passed its final reading before the Queensland Parliament and, at the date of this article, awaits royal assent.¹ When enacted, the Trusts Act 1973 (Qld) (Old Act) will be replaced by the Trusts Act 2025 (Qld) (New Act) to reflect the recommendations of the Queensland Law Reform Commission’s 2013 review of the Old Act.²

New or revised parts of theTrusts Bill 2025 (Qld)

The Bill will commence at a date to be fixed by proclamation, replacing all 128 sections of the Old Act with 310 new provisions. Of these new provisions, the most significant changes relate to::

trustee powers, duties, eligibility and appointment;
Court jurisdiction and dispute resolution; and
legal capacity provisions.

Changes to trustee powers, duties, eligibility and appointment

The Bill recognises new minimum or ‘core’ duties of trusties, which will read in the New Act as follows:

section 31 requires that the trustee’s delegate to be notified when the trustee is removed, discharged or replaced;
section 62 imposes a general duty to exercise care, diligence and skill in administering trusts;
section 63 imposes a duty to act honestly and in good faith to further the purposes of the trust or for the benefit of beneficiaries; and
section 64 imposes a duty to keep accurate accounts and records for a minimum of three (3) years after the termination of the trusts.

Trustee powers will be affected by the following provisions of the Bill:

section 76 confers power for a trustee to authorise another person to exercise the trustee’s investment powers;
section 82 confers on trustees all the powers of an absolute owner of the trust property, subject to the trustee’s duties; and
section 96 limits a trustee’s power to delegate a matter to a twelve (12) month period.

The following provisions of the Bill affect criteria for eligibility and the process of appointing a trustee:

section 13 mandates that an appointed trustee cannot be insolvent, under eighteen (18), or disqualified from appointment under section 168;
section 14 provides that a custodian trustee is not to be counted as a trustee for the limit on the number of trustees;
section 19 allows the appointment of a trustee not only by the appointor of the trust, but also by any other mechanisms under the trust instrument;
section 20 allows continuing trustees to appoint replacement trustees where another trustee becomes unable or unwilling to act in accordance with their position; and
section 22 confers power on a trustee’s administrator or attorney to appoint another person including themselves as a trustee where the old trustee develops impaired capacity and is the sole remaining trustee.

Changes to Court jurisdiction and dispute resolution

These amended provisions include:

section 15 provides the Court, rather than the Minister, authority to approve the appointment of more than four (4) trustees to a trust;
section 128 will increase the explicit threshold of capital that can be applied for the maintenance and education of beneficiaries;
section 143 removes the requirement for a person to exhaust all remedies against the trustee before enforcing any remedies against a recipient of a wrong distribution;
section 161 details the review and reduction of the amount of a trustee’s excessive remuneration;
section 166 gives the Court power to appoint and remove trustees if it is expedient;
section 168 grants the Court power to disqualify a person from being appointed as a trustee for a stated period; and
section 169 empowers the Court to order the removal and replacement of office holders who have been appointed under the trust.

Updated legal capacity

Finally, section 10 of the New Act redefines legal capacity by adopting the definition from the Guardianship and Administration Act 2000 (Qld).³

What does this mean for trustes?

The changes to the Old Act made by the Bill will affect the rights and obligations of trustee and beneficiaries. Trustees of Queensland based trusts should make themselves aware of the changes when considering their rights and obligations.

Links and further references

Legislation

Trusts Bill 2025 (Qld).

Trusts Act 1973 (Qld).

Further information

If you need advice on trust management, contact us for a confidential and obligation-free discussion:

Malcolm Burrows B.Bus.,MBA.,LL.B.,LL.M.,MQLS.
Legal Practice Director
T: +61 7 3221 0013 (preferred)
M: +61 419 726 535
E: mburrows@dundaslawyers.com.au

Disclaimer

This article contains general commentary only. You should not rely on the commentary as legal advice. Specific legal advice should be obtained to ascertain how the law applies to your particular circumstances.

Trusts Bill 2024 (Qld). ↩︎
Queensland Law Reform Commission, A Review of the Trusts Act 1973 (Qld): Interim Report, WP No 71 (June 2013). ↩︎
Guardianship and Administration Act 2000 (Qld) sch 4. ↩︎