Understanding the new 125-year limit with respect to Vesting and Perpetuity Period Changes
From 1 August 2025, the Property Law Act 2023 (Qld) introduced a major change for trusts governed by Queensland law.
The Act abolished the common-law rule against perpetuities and replaced it with a fixed maximum vesting period of 125 years, unless the trust deed provides for a shorter term.
Previously, most Queensland trusts were capped at 80 years, meaning many long-standing family, discretionary or testamentary trusts were approaching their original vesting dates.
Why this matters
Trusts are widely used for asset protection, succession planning and tax flexibility. The vesting date is critical because when a trust reaches this date, it effectively “ends” which can trigger:
- Capital gains tax (CGT) on the deemed disposal of assets
- Stamp duty consequences
- Loss of carry-forward tax losses
- Other administrative and financial impacts
Extending the vesting period can help delay these tax events and preserve planning flexibility for families and business owners.
Extending the vesting period to 125 years
For new trusts (from 1 August 2025)
To take advantage of the 125-year period:
- Ensure the trust is governed by Queensland law (for example, the trustee, assets or beneficiaries are located in Queensland)
- Include a clause in the trust deed specifying the new 125-year vesting term.
For existing trusts (not yet vested)
If your trust is already in place, check the trust deed to see if it gives the trustee the power to vary the vesting date.
- If YES: Under Section 216, the trustee may execute a Deed of Variation to extend the vesting period to 125 years
- If NO: Options include:
If all beneficiaries are adults and of full capacity and consent to the change, or
Apply to the Supreme Court of Queensland for an extension.
IMPORTANT: Changing the vesting date may trigger tax or duty issues such as a resettlement or CGT event. Do not assume an extension is possible if the trust deed prohibits variation or if the trust has already vested.
Review checklist for trustees and advisors
Carrick Aland recommends a review of all active trust deeds, especially those:
- Holding significant capital assets or dutiable property
- With vesting dates approaching soon
- Established in the 1970s–1990s, where an 80-year period may now be expiring.
Other key actions include:
- Assess if extending the trust makes sense – if assets will soon be sold, extension may not be worthwhile
- Document any change via a Deed of Variation before the current vesting date
- Where no variation power exists and a court application is required, consider obtaining an ATO Private Binding Ruling (PBR) first, as the ATO is closely reviewing all changes
- For interstate trusts or those with assets outside Queensland, confirm which jurisdiction governs the trust and if Queensland law applies
- For testamentary trusts, check the will’s governing law, testator’s domicile and asset locations. A Deed of Record can help clarify jurisdiction.
Professional support
At Carrick Aland, we recommend all trust holders with Queensland-based trusts take proactive steps as a result of the changes in effect from 1 August 2025. Reviewing your trust deed can help avoid unintended tax outcomes and maintain control over long-term asset planning.
For assistance reviewing your trust deed or understanding how these new rules may affect your structure, contact Carrick Aland on 07 4669 9800 in Dalby, Toowoomba and Chinchilla.
