Queensland Trusts get a Major Lifespan Boost

Queensland trusts can now run for up to 125 years – a significant increase from the previous limit. This change came into effect on 1 August 2025 with the introduction of the new Property Law Act 2023 (Qld).

Why is this happening?

The new Property Law Act replaces the old common law rules around perpetuities, essentially, how long a trust can last. Under the old system, Queensland trusts could  run for a maximum of 80 years (if set out in the trust deed) or follow a more complicated formula of “a life in being plus 21 years.”

The new law simplifies this and allows a straightforward maximum perpetuity period of 125 years for trusts established from 1 August 2025 onwards.[1]

Which trusts does this apply to?

The new 125 year limit applies to all types of Queensland trusts created on or after 1 August 2025, including family and discretionary trusts and unit trusts.

A trust is considered a “Queensland trust” if it’s governed by Queensland law. This might be because the trustee, beneficiaries, or trust assets are based in Queensland, or because the trust deed specifies Queensland law as the governing law.

Why does the perpetuity period matter?

The perpetuity period determines when a trust must vest, that is, when the assets must be distributed to beneficiaries. Once the trust reaches its vesting date, the trustee usually has to wind it up and distribute all assets, which can trigger significant tax implications (like capital gains tax or stamp duty).

By extending the trust’s lifespan, you can:

• Delay major tax events linked to vesting;
• Maintain the flexibility and benefits of a trust for longer; and
• Allow the assets of the trust to benefit multiple generations.

How does Queensland compare to other states and territories?

The 125 year limit is one of the longest in Australia. By comparison:

• The ACT[2] and NSW[3] still have an 80 year maximum;
• The NT[4], Tasmania[5], Victoria[6] and WA[7], use the “life in being plus 21 years” rule unless an 80 year period is specified; and
• South Australia[8] allows an application for the trust to vest to be made to the court (usually by a beneficiary) after 80 years.

What about existing trusts?

The new rule doesn’t automatically apply to trusts created before 1 August 2025. However, there are ways to extend an existing trust’s perpetuity period to adopt the 125 year maximum. These include:

• Using a suitable variation power already in the trust deed to vary the deed;
• Varying the deed with the consent of all adult beneficiaries (if practical); or
• Applying to the Supreme Court of Queensland if the above options aren’t available or practical.

Care needs to be taken with these variations, as improper documentation or acting outside the trust’s powers could render the change invalid or lead to significant tax or duty issues.

Why consider extending your trust’s lifespan?

Even if 80 years feels like a long time, the future is unpredictable, especially when thinking about multiple generations, evolving tax laws, or long-term asset strategies. Opting for the 125 year period gives trustees and families more flexibility and control.

If you’re setting up a new trust or reviewing an existing one, it’s worth considering whether this change could benefit your estate or tax planning.

Queries

Our Corporate & Commercial team has extensive experience in estate planning, tax strategies, and trust law. If you’d like to review your trust deed or explore whether your trust can be varied, we can help you take the next steps.

Disclaimer

This information and the contents of this publication, current as at the date of publication, is general in nature to offer assistance to Cornwalls’ clients, prospective clients and stakeholders, and is for reference purposes only. It does not constitute legal or financial advice. If you are concerned about any topic covered, we recommend that you seek your own specific legal and financial advice before taking any action.

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[1] Property Law Act 1974 (Qld) s 209.

[2] Perpetuities and Accumulations Act 1985 (ACT) s 8(1).

[3] Perpetuities Act 1984 (NSW) s 7(1).

[4] Law of Property Act 2000 (NT) s 187.

[5] Perpetuities and Accumulations Act 1992 (Tas) s 6.

[6] Perpetuities and Accumulations Act 1968 (Vic) s 5.

[7] Property Law Act 1969 (WA) s 101.

[8] Law of Property Act 1936 (SA) s 61 and s 62.