Queensland extends the perpetuity period to 125 years — what trustees need to know

• Jurisdiction: Queensland

• Legislation Update: Trusts

• Act: Property Law Act 2023 (Qld)

• Commencement date: 1 August 2025

Disclaimer: The information in this article is general in nature and should not be construed as specific advice or relied upon in lieu of appropriate professional advice. While LEAP Legal Software uses commercially reasonable efforts to ensure accuracy at the time of publication, LEAP does not warrant the accuracy, currency or completeness of this information and excludes all loss or damage howsoever arising (including through negligence) in connection with its use.

On 1 August 2025, the operative provisions of Queensland's new Property Law Act 2023 (Qld) (Act) commenced.

Among the most significant changes: Queensland has abolished the rule against perpetuities and extended the maximum perpetuity period to 125 years. For trustees managing discretionary trusts approaching their vesting dates, this creates a narrow but valuable window to act.

Queensland has ... extended the perpetuity period to a maximum of 125 years"

Here's what practitioners need to know:

How the rule against perpetuities changed in Queensland

As part of the broader property law reform, Queensland has abolished the common law rule against perpetuities. In its place, the Act introduces a statutory maximum perpetuity period of 125 years.

For trusts established before 1 August 2025, the Act specifically contemplates how a trustee might vary the vesting date to take advantage of the extended period, but there are procedures to follow.

Three ways to extend a trust vesting date under the Act

1. Power of variation under the trust deed

Section 216 of the Act allows a variation to the trust deed to extend the vesting date for the trust, but only where the trust deed authorises the trustee to vary the vesting date. This means that the trust deed must be construed properly to determine whether the trustee has the power to vary the vesting date for the trust.  

...the trust deed must be construed properly to determine whether the trustee has the power to vary the vesting date."

2. Beneficiary consent

Section 217 of the Act provides that where the trust deed does not authorise the trustee to vary the vesting date for the trust, then the deed can be varied only if all beneficiaries of the trust: 

• are adults of full capacity; and 

• sign a deed to vary the vesting date. 

For many discretionary trusts, this option will be impractical as the class of beneficiaries can be so broad that it is unlikely that all beneficiaries are adults of full capacity. 

For many discretionary trusts, this option will be impractical..."

3. Court Application 

Section 219 allows a beneficiary to apply to the Court for an order extending the vesting date. This is typically the fallback where neither of the above pathways is available.

Tax and duty risks when a trust approaches its vesting date

Most trust deeds include clauses requiring the trustee to distribute all trust property before the end of the perpetuity period. As the vesting date approaches, this can trigger a range of tax and duty consequences that trustees need to manage carefully.

For trusts due to vest in the coming years, there is now an opportunity to obtain appropriate advice about extending the vesting date and managing those consequences effectively.

...this can trigger a range of tax and duty issues which trustees should consider..."

Interstate trusts: determining the proper law before varying the vesting date

The extended vesting date only applies to trusts governed by Queensland law. For trusts with close connections to other states (for example, because the trustee administers the trust interstate or because the trust holds interstate assets), it is critical that the trustee determines the proper law of the trust before taking any steps to extend the vesting date.

An improper exercise of the variation power may trigger the very tax and duty issues the trustee is seeking to avoid.

Reference: Property Law Act 2023 (Qld)