125-Year Perpetuity Period for Queensland Trusts

James Creevy and Mitchell Harding, current as of: 24 July 2025.

From 1 August 2025, the Property Law Act 2023 (Qld) will officially commence, providing a significant advantage for tax planners and advisers with clients whose trusts are governed by Queensland trust laws. This advantage will be borne out of an extension to the current maximum perpetuity period that a trust can operate for with it being increased from 80 years to 125 years. 

Importantly for Acis clients, this relates to the vesting dates for discretionary trusts, lineal descendants’ discretionary trusts, unit trusts and hybrid family unit trusts. Naturally, there are several questions that spring to mind for advisers and their clients including: 

  1. what determines if a trust is governed by Queensland laws? 
  1. why extend the maximum perpetuity period of a trust? 
  1. what can advisers do now to allow for their clients trusts to have a perpetuity period of 125 years? 

What determines if a trust deed is governed by Queensland laws? 

Whether a trust is governed under Queensland law is determined by whether the trust itself is most substantially connected to Queensland. The factors considered when determining this include: 

• Where the trust’s assets are located; 

• Where the trustee lives or carries on business; and 

• Where the trust’s management is located 

If the trust’s most substantial connection is with Queensland, it is likely to be deemed a trust subject to Queensland trust laws, and is therefore able to have a perpetuity period of 125 years.  

Why extend the maximum perpetuity period of a trust? 

It is becoming increasingly common to see trusts that were established some years ago approach their vesting date, which will inevitably trigger significant tax consequences, particularly in relation to capital gains tax (CGT). With this change now allowing trusts to operate for 125 years, advisers should recognise the opportunity to maximise the  period over which key benefits – including asset protection, income distribution flexibility, and intergenerational wealth management – can be utilised. 

What advisers can do to ensure their trust clients have a maximum perpetuity period of 125 years? 

From 1 August, Acis will ensure that all trusts established from this date will allow for Queensland governed trusts to have the maximum perpetuity period of 125 years. It’s important to remember that this will only apply to trusts that are most substantially connected to Queensland after considering where the trustee manages the trust from, and where the trust assets are located. 

For existing trusts, the new legislation will provide an opportunity to ‘opt in’ to the 125 year window by amending the trust deed to extend the maximum perpetuity period of the trust. However, the amendment will be subject to the trust deed having a sufficiently broad amendment power which permits such an extension to the date that the trust is set to vest and terminate. 

Where the amendment power is sufficiently broad, Acis will be able to assist with preparing the amendment so that the trustee of a trust can give effect to this change and extend the maximum allowable perpetuity period to 125 years. If the amendment power is not sufficiently broad, we will ensure the adviser is notified and explore the other options that may be available to extend the perpetuity period.  

The Acis legal team is here to support you through these changes and help you and your clients maximise the perpetuity period for a trust where possible. 

Act Now

Acis can assist with one-off deed amendments; however, this is a valuable opportunity to extend the lives of all your Queensland trusts, ensuring uniformity and making the most of the extended 125-year period. Get in touch with us today to discuss the options available to you.

Acis does not provide advice in relation to commercial law, taxation, duty, company law or any other matter. We do not purport to provide advice nor should you construe anything in any correspondence with us, or material provided by us, as advice of any kind.
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