QLD Property Law Act Reform

The Queensland Government has introduced significant changes to property law with the passing of the Property Law Act 2023 (Qld) (Act), which came into effect on 1 August 2025. Among the key reforms, is the extension of the maximum perpetuity vesting period for trusts, a development that promises to transform the way trusts are structured and managed in Queensland.

Key Changes

The most notable change under the Act, is the extension of the maximum perpetuity period for trusts from 80 years to 125 years. This change abolishes the longstanding common law rule against perpetuities, which previously placed a time limit on the duration of trusts. Traditionally, this rule ensured that property held in trust would eventually vest (be distributed to beneficiaries) within a set timeframe.

By extending the perpetuity period, Queensland’s trust laws are now more aligned with leading international jurisdictions such as England, marking a significant step forward in modernising the State’s property and trust framework. This reform enhances Queensland’s standing in global wealth management and offers greater flexibility to trust settlers and beneficiaries.

Key Details

From 1 August 2025, the new 125 year maximum vesting period will apply to all types of trusts governed by Queensland law. This includes discretionary, unit, fixed, bare, and testamentary trusts.

For new trusts created after this date, the extended 125 year period can be included in the trust deed, ensuring compliance with the new legislation from the outset.

Impacts on Existing Trusts

For existing trusts that have not yet vested (have not yet distributed their assets or reached their vesting date) trustees will need to amend the trust deed to take advantage of the new 125 year period. Depending on the terms of the trust, this may involve a formal amendment process, which could require unanimous agreement from all adult beneficiaries. In some cases, trustees may need to seek approval from the Supreme Court of Queensland to vary the trust.

Benefits of Reform

This legislative change offers several key advantages, including:

• Long-Term Stability and Strategic Planning: trusts with a 125 year vesting period provide families, businesses, and charitable foundations with enhanced stability and flexibility for long-term planning. This is particularly beneficial for those seeking to preserve assets across multiple generations.

• Intergenerational Wealth Transfer: by allowing trusts to hold and manage assets for longer periods, this reform facilitates smoother intergenerational wealth transfer, ensuring that family businesses, estates, and charitable foundations can continue to thrive without the pressure to wind up too soon.

• Optimised Legacy Planning: the extended vesting period supports long-term asset protection and legacy planning, offering individuals and families more control over their wealth for generations to come.

Conclusion

The Act brings a significant shift in the way trusts are structured in Queensland, providing greater flexibility, stability, and strategic opportunities for estate planning.

Whether you are looking to update an existing trust, establish a new one, or ensure compliance with the new 125 year vesting period, expert legal advice is crucial.

For personalised advice and guidance on how these changes impact your trust or estate planning, contact one of the experienced lawyers at Suthers Taylor. Our team specialises in trust law, property law, and wealth management, and can help you navigate the complexities of the new legislation.

We offer tailored solutions to meet your unique needs, ensuring your estate planning is optimised for long-term financial stability and peace of mind.