Payroll Tax and Service Agreements – What Medical Practices Need to Know in 2026

Payroll Tax and Service Agreements – What Medical Practices Need to Know in 2026

Home » Corporate & Commercial

Payroll Tax and Service Agreements - What Medical Practices Need to Know in 2026

}

3 min read

14 Oct 2026

Share:

  • r
    Key Takeaways
  • ࠂ
    Payroll Tax rules vary by State – Exemptions, concessions, thresholds and rates differ across Australia, making it essential for practices to understand their state or territory’s requirements.
  • ࠂ
    Service Agreements matter – Current, signed Service Agreements should accurately reflect practitioner arrangements, including billing, service fees and the flow of funds.
  • ࠂ
    Review & reduce risk – Practices should review agreements, payment arrangements and operational processes to identify potential payroll tax exposure and ensure they are appropriately structured and documented.

Stay Up-To-Date

Subscribe to receive updates specific to your preferences

Payroll tax remains a significant issue for medical, dental and allied health practices across Australia.

The application and enforcement of payroll tax varies between states and territories, as do rates, thresholds, exemptions and concessions. This can make it difficult for practices to understand their obligations and assess whether payments made to practitioners may attract payroll tax.

With Revenue Offices continuing to scrutinise practitioner arrangements, practices should understand the rules that apply in their jurisdiction and ensure their contractual, financial and operational arrangements are appropriately structured and documented.

Payroll Tax Relief for Medical Practices by State and Territory

Current as at September 2026. Payroll tax rules and Revenue Office guidance are subject to change.

Australian Capital Territory (ACT)

Annual Threshold: $1.75 million
Rate: 6.75% for annual wages from $1.75 million to $20 million (variable rates for annual wages exceeding $20 million)

GP Clinics:

From 1 July 2025, medical practices that engage general practitioners, or other contractors who perform medical services that are bulk-billed or certain services under the Veteran’s Entitlements Act 1986 (Cth) or under the Workers Compensation Act 1951, are exempt from paying payroll tax on wages for those services performed.

New South Wales (NSW)

Threshold: $1.2 million
Rate: 5.45%

GP Clinics:

From 4 September 2024, medical centres can claim a rebate of payroll tax for payments made to GP Contractors if they meet the relevant proportion of general practitioner services under the “prescribed billing arrangements” which are subject to the following thresholds:

  • Metropolitan Sydney: 80% of general practitioner services; and
  • Other areas: 70% of GP services

Suburb classification can be found on the Revenue NSW website.

The prescribed billing arrangements for general practitioner services include the following:

  • Bulk billing arrangement, where a person responsible for paying for the services assigns their right to a Medicare benefit for the service; and the general practitioner accepts the Medicare benefit as full payment for the service.
  • Veterans arrangement, for general practitioner services, refers to arrangements under which the general practitioner accepts full payment for services listed under the Department of Veteran Affairs and its relevant Acts of Commonwealth; or approved by the Chief Commissioner of Revenue NSW.

Queensland

Threshold: $1.3 million
Rate: 4.75% for annual wages below $6.5 million and 6.95% for annual wages more than $6.5 million

GP Clinics:

From 1 December 2024, wages paid to contracted GPs are exempt from payroll tax.

Dental Clinics:

An amnesty was provided for payments made to contracted and registered dentists from 1 July 2018 to 30 June 2025. There are currently no exemptions or amnesties available for dental clinics in Queensland.

South Australia

Threshold: $1.5 million (with up to $600,000 deduction)
Rate: 0%-4.95% (variable for annual wages between $0 to $1.7million)

GP Clinics: From 1 July 2024, an ongoing exemption applies to wages relating to bulk-billed services only.

The bulk-billing exemption applies to GP services and does not extend to other staff, pathology or allied health services.

Dental & Specialist Clinics:

Currently, no relief or exemptions apply after 1 July 2024.

Victoria

Threshold: $1 million
Rate: 4.85%

GP Clinics:

From 1 July 2025, a payroll tax exemption applies only to wages paid or payable by a general practice medical business to contractor GPs for medical services performed that are fully-funded consultations. This exemption does not apply to dental or allied health medical centres.

Western Australia

Threshold: $1 million
Rate: 5.5%

Western Australia assesses payroll tax based on a common law employer-employee relationship rather than extended contractor provisions. Doctors who run their own true businesses are generally not counted as taxable wages.

The $1 million payroll tax threshold is subject to a diminishing threshold for employers or groups with Australian taxable wages between $1 million and $7.5 million.

Medical Clinics:

WA does not apply payroll tax to payments made to contracted GPs or allied health practitioners.

Tasmania

Threshold: $1,250,001 million
Rates: 4% for annual wages between $1,250,001 million and $2 million. 6.1% for annual wages above $2 million.

Medical Clinics:

There are no exemptions or amnesties currently available.

Tasmania has not issued public guidance on how payroll tax applies to medical centres.

Northern Territory

Threshold: $2.5 million
Rate: 5.5% for annual wages less than $100 million, 6.5% for annual wages more than $100 million.

Medical Clinics:

There are no exemptions or amnesties currently available.

The Northern Territory has not issued public guidance on how payroll tax applies to medical centres.

Increased Scrutiny - Is your Practice Audit-Ready?

While greater certainty now exists in some jurisdictions, there is no single Australian payroll tax position for medical practices.

Revenue Office audit activity is continuing, with practitioner arrangements, contractor payments and the supporting financial and operational records of practices coming under scrutiny.

Practices that cannot rely on an exemption or concession should review their practitioner arrangements and supporting documentation to identify and address potential payroll tax exposure.

One of the key documents is the Service and Facilities Agreement (SFA).

What is a Service and Facilities Agreement?

An SFA governs the relationship between a practice and an independent practitioner operating their own medical or healthcare business.

Under a typical arrangement, the practice provides the practitioner with facilities and administrative services required to operate their business, and the practitioner pays the practice a service fee in return.

An SFA should clearly document the parties' respective rights and obligations, including the services and facilities provided, practitioner independence, service fees, billing and payment arrangements, patient records and termination arrangements.

Why Service Agreements Matter for Payroll Tax

A well-drafted SFA can help:

  • Clearly establish the intended legal and commercial relationship between the practice and practitioner;
  • Document how patient fees and service fees are collected and paid;
  • Support the practice's payroll tax position;
  • Ensure contractual arrangements align with the way the practice operates;
  • Reduce the risk of disputes during and after a practitioner's engagement; and
  • Support future restructuring, sale or succession.

However, simply having an SFA is not enough.

Revenue Offices may look beyond the title of an agreement when determining whether practitioner payments are subject to payroll tax. The terms of the agreement, the flow of funds between the patient, practitioner and practice, and the way the arrangement operates in practice can all be relevant.

Don't Overlook the Flow of Funds

How patient fees are collected and how service fees are paid can be particularly important.

Practices should review their banking and payment arrangements alongside their SFAs to ensure the documented arrangement is appropriately structured and accurately reflects the intended relationship between the practice and practitioner.

Changes to payment gateways, EFTPOS arrangements, bank accounts, billing systems or administrative processes should also prompt a review of the relevant SFA and payroll tax position.

Make sure your Agreements are Signed

An unsigned or expired agreement can create significant risk.

Practices should ensure SFAs are properly executed before a practitioner commences, rather than treating signatures as an administrative task to be completed later.

Electronic signing, central agreement registers, automated reminders and clear responsibility for practitioner onboarding can help ensure agreements do not remain unsigned or expire unnoticed.

What should Medical Practices do Now?

Medical, dental and allied health practices should:

  • Understand the payroll tax rules, rulings and exemptions that apply in their state or territory;
  • Assess whether practitioner payments may be subject to payroll tax;
  • Ensure every practitioner has a current and signed SFA;
  • Review the flow of funds and banking arrangements between patients, practitioners and the practice;
  • Check that SFAs accurately document the intended practitioner arrangements;
  • Review agreements when billing processes, ownership, structure or operational arrangements change; and
  • Seek legal and accounting advice where there is uncertainty or potential exposure.

How Hillhouse can help

Payroll tax and practitioner arrangements are complex, and the position continues to evolve.

Hillhouse Legal Partners works closely with medical, dental and allied health practices to provide practical, commercially focused advice on Service and Facilities Agreements, practitioner arrangements and payroll tax risk.

If your practice does not have current SFAs in place, your agreements have not been reviewed recently, or you are concerned about your payroll tax position, now is the time to act.

Our experienced Health & Medical legal team can help you identify potential risks, strengthen your agreements and implement practical solutions that work for your practice.

Contact Craig Hong, or Zach Sudiro on (07) 3220 1144 or email@hillhouse.com.au.

Legal Alert: Employment Law Cost Changes Commencing 30 June and 1 July 2026

Legal Alert: Employment Law Cost Changes Commencing 30 June and 1 July 2026

Home » Corporate & Commercial

Employment Law Cost Changes Commencing 30 June and 1 July 2026

}

3 min read

2 Jul 2026

Share:

  • r
    Key Takeaways
  • ࠂ
    Employers need to prepare for several significant employment law changes taking effect from 30 June and 1 July 2026.
  • ࠂ
    Payroll systems, superannuation processes and employee pay rates should be reviewed to ensure they reflect the new legal requirements.
  • ࠂ
    Health and pharmacy employers face award-specific wage increases, while all employers need to comply with new superannuation and minimum wage obligations.
  • ࠂ
    Taking proactive steps now can help minimise the risk of underpayments, penalties and workplace disputes.

Stay Up-To-Date

Subscribe to receive updates specific to your preferences

A number of significant employment law cost changes commence from 30 June and 1 July 2026. These reforms affect employer obligations relating to superannuation, minimum wages, modern awards and Paid Parental Leave.

Now is the time to ensure your payroll systems, employment practices and workplace policies are up to date.

30 June 2026 

Wage increases to awards found subject to gender-based undervaluation

As part of the Fair Work Commission's gender undervaluation reforms, the following increases take effect from the first full pay period commencing on or after 30 June 2026:

  • The first of five staged wage increases under Health Professionals and Support Services Award 2020
  • The second of three phases of wage increases under the Pharmacy Industry Award 2020
  • The first of three increases to minimum rates under the Children’s Services Award 2010

Employers should:

  • Review relevant award/s and identify confirm new rates. The Fair Work Ombudsman Pay and Conditions Tool can provide useful guidance: P.A.C.T Pay Calculator - Find your award
  • Review employee classifications and confirm employees are correctly classified
  • Update payroll systems with to reflect minimum award rates

1 July 2026

Payday Super Begins

Superannuation contributions must now be received by an employee's nominated super fund within seven business days of each payday. This replaces the current quarterly payment system.

Employers should:

  • Review payroll and superannuation processes
  • Consider any cashflow impacts of more frequent super payments
  • Ensure payroll systems can meet the new payment deadlines

New Super Calculation Rules

The Super Guarantee will now be calculated using qualifying earnings (QE) rather than ordinary time earnings (OTE).Qualifying earnings include OTE, commissions and certain salary sacrifice amounts.

Employers should:

  • Review payroll systems
  • Review current remuneration arrangements, particularly commission-based or complex arrangements
  • Confirm superannuation is being calculated correctly

Expanded Paid Parental Leave

Eligible families with children born or adopted on or after 1 July 2026 will be entitled to 26 weeks (130 days) of Government-funded Paid Parental Leave, an increase from the previous entitlement of 24 weeks.

Employers should ensure their parental leave policies and employee communications reflect the expanded scheme.

Superannuation on Paid Parental Leave

The Australian Taxation Office will make superannuation contributions of 12% to current and future recipients of government funded paid parental leave, and to those who received government funded paid parental leave in the 2025-26 financial year.

Minimum Wage Increases

From the first full pay period commencing on or after 1 July 2026:

  • The National Minimum Wage increases to $26.44 per hour ($1,004.90 per week)
  • Modern award minimum wages increase by 4.75% 

Employers should also review salary and annualised wage arrangements to ensure employees remain better off overall.

Employers should:

  • Review employee pay rates
  • Update payroll systems
  • Check annualised salary arrangements remain compliant

What Employers Should Do Now

With multiple changes taking effect within a short period, employers should take the opportunity to review their workplace compliance obligations.

Key actions include:

  • Review award classifications and employee pay rates
  • Update payroll systems for the new wage and superannuation requirements
  • Ensure compliance with the new Payday Super regime
  • Review employment contracts and remuneration arrangements where necessary
  • Update parental leave policies and employee communications

Failure to comply with workplace laws can expose employers to underpayment claims, financial penalties and costly workplace disputes.

If you are unsure how these changes affect your business, require assistance reviewing your employment practices or believe you may have failed to comply with one or more of your workplace law obligations, the Employment & Industrial Relations team at Hillhouse Legal Partners can assist.

Please contact Robert Lamb on (07) 3220 1144 or robert@hillhouse.com.au.

5 Things to Know About the AML/CTF Reforms from 1 July 2026

5 Things to Know About the AML/CTF Reforms from 1 July 2026

Home » Corporate & Commercial

5 Things to Know About the AML/CTF Reforms from 1 July 2026

Author: Craig Hong 

}

3 min read

4 Jun 2026

Share:

  • r
    Key Takeaways
  • ࠂ
    From 1 July 2026, professional service providers like Hillhouse Legal Partners will be legally required to verify client identity and conduct additional compliance checks.
  • ࠂ
    Clients may need to provide documents such as photo ID, company or trust records and information about the source of funds for certain transactions.
  • ࠂ
    These checks apply to everyone and are part of a broader effort to help prevent money laundering, fraud and financial crime in Australia.

Stay Up-To-Date

Subscribe to receive updates specific to your preferences

From 1 July 2026, major new Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws will change how professional service providers, including law firms like Hillhouse Legal Partners, work with their clients across Australia.

For many people, this will mean providing more identification and information when working with lawyers, accountants, real estate agents and other advisers.

While the process may feel unfamiliar at first, these changes are designed to help protect Australia’s financial system, businesses and communities from criminal activity.

  1. More industries are now captured by the laws

Australia’s AML/CTF laws are expanding to include more industries and professions.

From 1 July 2026, these obligations will apply to businesses including:

  • Law firms like Hillhouse
  • Accounting firms
  • Real estate agencies
  • Trust and company service providers
  • Businesses involved in high-value transactions

These reforms will require firms to:

  • Verify client identity
  • Understand who owns or controls companies and trusts
  • Assess money laundering risks
  • Monitor certain transactions and activities
  • Report suspicious matters to AUSTRAC
  1. Clients will need to provide more information

From 1 July, Hillhouse clients may notice additional checks and requests for information when engaging our team for certain legal services and transactions.

Depending on the work involved, our team may request:

  • A passport or driver licence
  • Proof of address
  • Company, trust or SMSF documentation
  • Information about ownership or control of entities
  • Source of funds information for certain transactions

These checks will become a standard legal requirement across many industries and services.

Importantly, businesses and professional advisers, including law firms, may not be able to provide some services if the required information is not supplied.

  1. The laws are designed to target financial crime

AUSTRAC estimates more than $68 billion of crime-related money is laundered through Australia every year.

The reforms are designed to:

  • Help prevent organised crime and fraud
  • Reduce financial abuse and illegal activity
  • Protect businesses and consumers
  • Bring Australia in line with global AML standards

These laws are not aimed at everyday Australians doing the wrong thing.

They are designed to stop criminals from using legitimate businesses and professional services to move illegal money through the economy.

  1. The checks apply to everyone

Under the new laws, firms like Hillhouse will need to understand who they are acting for and assess whether certain transactions or arrangements present higher risks.

For example, where companies or trusts are involved, firms may need to identify the individuals who ultimately own or control those structures.

This does not mean there is a problem with a client or transaction.

The law requires firms to apply consistent checks across their client base.

  1. Hillhouse is preparing now to support clients

At Hillhouse Legal Partners, our team has been preparing for these reforms for some time to ensure we are ready to support our clients well before the changes commence.

Our focus is on making the process as practical, secure and straightforward as possible.

Hillhouse clients can expect:

  • Clear communication about what is required
  • Secure handling of personal information
  • Streamlined systems and processes
  • Support and guidance throughout the process

We understand these changes may raise questions for clients and businesses alike.

The Hillhouse team is here to help clients understand what the new obligations mean and how they may affect future transactions and engagements.

While the additional checks may feel like another layer of administration, they form part of a much broader effort to help protect Australia’s financial system and reduce financial crime.

For further guidance and information please visit www.austrac.gov.au.

If you have any questions please reach out to us at email@hillhouse.com.au

Areas of Expertise

ACCC v Coles: A Landmark Case in Consumer Protection

ACCC v Coles: A Landmark Case in Consumer Protection

Home » Corporate & Commercial

ACCC v Coles: A Landmark Case in Consumer Protection

}

3 min read

19 May 2026

Share:

  • r
    Key Takeaways
  • ࠂ
    The Federal Court’s findings against Coles over its “Down Down” campaign show that retailers may breach consumer law when advertised discounts are based on prices that were only briefly increased beforehand
  • ࠂ
    The case highlights that even commercially justified price increases can still mislead consumers if “sale” pricing does not reflect a genuine and sustained previous price
  • ࠂ
    The decision sends a strong warning to supermarkets and retailers that discount advertising must accurately represent real consumer savings under Australian Consumer Law

Stay Up-To-Date

Subscribe to receive updates specific to your preferences

ACCC v Coles: A Landmark Case in Consumer Protection

On 14 May 2026, the Federal Court of Australia found that Coles Supermarkets Australia Pty Ltd (Coles) made false or misleading representations about the prices of products, in contravention of sections 18(1) and 29(1)(i) of the Australian Consumer Law (ACL).

Background

The Australian Competition and Consumer Commission (ACCC) commenced proceedings against Coles in September 2024, alleging that it made false or misleading representations about the prices of 245 products (affected products). Separately, a class action was also brought against Coles in relation to those products. The Federal Court previously ordered that liability in both proceedings be determined jointly.

The allegations concerned Coles’ ‘Down Down’ promotional pricing tickets, which advertised discounted prices against a ‘Was’ price. It was alleged that Coles temporarily increased the prices of the affected products by at least 15% for a relatively short period before including those products in its Down Down promotion at prices that were the same as, or higher than, the original prices. The ACCC argued that the discounted prices were not genuine and were therefore false or misleading.

Key issues

The Court considered a sample of 14 affected products and accepted that the Down Down tickets conveyed to ordinary consumers that Coles had discounted the price of those products from the ‘Was’ price and that the discount was genuine.

To determine whether consumers had been misled, Justice O’Bryan considered, in relation to the sampled products:

  1. the reason/s for the price increase prior to inclusion in the Down Down promotion
  2. the extent of the price increase
  3. the number of products sold at the ‘Was’ price
  4. how long the products were sold at the ‘Was’ price

His Honour concluded that:

  1. the price increases were due to increases in supplier costs and were commercially justifiable
  2. the increased prices were not ‘artificially high’
  3. products were sold at the ‘Was’ price in the ordinary course of business and in commercial volumes
  4. products were generally sold at the ‘Was’ price for four weeks, which, having regard to the matters below, was not a reasonable period

In determining what constituted a reasonable period, the Court considered several matters, including a previous internal policy requiring a product to be sold at a particular price for 12 weeks before that price could be advertised as a ‘Was’ price on a Down Down ticket. Notably, that policy had been relaxed due to perceived competitive pressure from Woolworths.

The Court considered that if an ordinary consumer were told a product had been sold at the ‘Was’ price for less than 12 weeks, they would not regard the discount as genuine.

Decision

The Court ultimately found that 13 of the 14 sampled Down Down tickets were misleading because the ‘Was’ prices displayed on the promotional tickets were not maintained for a reasonable period and did not accurately represent the previous prices of the products. As a result, the discounts represented were not genuine and were misleading.

The only sampled Down Down ticket found not to be misleading did not include a ‘Was’ price.

Penalties and other orders sought by the ACCC, as well as compensation sought separately in the class action, are yet to be determined by the Federal Court, although it is anticipated that the amounts involved will be substantial.

Impact for businesses

The judgment serves as an important reminder for businesses to maintain transparency and accuracy in their marketing practices. Businesses should review their promotional strategies and internal policies to ensure strict compliance with the ACL.

If you are unsure about your obligations, please contact us.

 

Areas of Expertise

Queensland Trusts: The 2025 Reform Explained- What It Means For You

Queensland Trusts: The 2025 Reform Explained- What It Means For You

Home » Corporate & Commercial

Queensland Trusts: The 2025 Reform Explained - What It Means for You

}

3 min read

12 May 2026

Share:

  • r
    Key Takeaways
  • ࠂ
    The Trusts Act 2025 (Qld) introduces a modern, clearer framework for how trusts operate in Queensland
  • ࠂ
    Trustees now have broader powers, but those powers come with more clearly defined duties and accountability
  • ࠂ
    Beneficiaries have stronger rights, including better access to information and improved financial protections
  • ࠂ
    Now is the time to review your trust deed and governance processes to ensure they align with the new regime

Stay Up-To-Date

Subscribe to receive updates specific to your preferences

A long-awaited reset for trust law in Queensland

With the introduction of the Trusts Act 2025 (Qld) (the Act), the State has amended a 50-year old legislation that better reflects how trusts are used today.

While the core concept of a trust remains unchanged, the way trusts are administered, documented and challenged has evolved. The new Act is designed to simplify interpretation, improve transparency, and provide clearer guidance for trustees and beneficiaries alike.

A stronger statutory framework

The new Act now intends to operate despite inconsistent wording in a trust deed, except where the legislation itself permits otherwise. In practical terms, this means the trust deeds now need to be checked against the Act rather than treated as automatically prevailing over it.

Broader powers and clearer duties of trustees

The new Act now expands authority given to trustees. Trustees are now equipped with powers similar to those of an absolute owner of the trust assets, unless the trust deed says otherwise. This is intended to make day-to-day administration more workable and less dependent on long lists of specific powers in the trust deed.

This increased flexibility is particularly relevant for investment and decision-making. Trustees can now delegate certain functions, including investment responsibilities, provided strict requirements are met around documentation, time limits and oversight.

However, this is not a relaxation of responsibility. Quite the opposite.

The Act introduces a clear statutory framework for trustee duties which cannot be contracted out, requiring trustees to:

  • Act honestly and in good faith
  • Exercise appropriate care, skill and diligence
  • Prioritise the interests of beneficiaries
  • Maintain proper records and provide access when requested.

For professional trustees or those with specialist expertise, the expectations are even higher. This reflects a broader theme of the reforms: greater power paired with greater accountability.

 Clearer rules around who can act as trustee

The new legislation also tightens the rules around trustee eligibility and succession.

Under the new Act, a person can generally be a trustee unless they fall into a specific ineligible category. The Act now expressly prevents the following from being appointed as a trustee:

  • A child (under 18).
  • An individual who is insolvent under administration (e.g. a person subject to a bankruptcy order).
  • A corporation that is a “Chapter 5 body corporate” (a company in administration, being wound‑up, or otherwise under external administration).

This means trust deeds no longer need to rely on specific clauses in the trust deeds to exclude minor or insolvent entities.

At the same time, the process for appointing and replacing trustees has been made more practical, particularly where incapacity becomes an issue because the Act builds in statutory fallbacks instead of always requiring a court order.

Trustees can now be appointed by the appointor, by any other mechanism in the deed, or by statutory powers if no one else acts within a reasonable time, and the Act also clarifies who may remove a trustee (e.g., appointor or continuing trustees) where the trustee is unfit, incapable, or unable to act, reducing the need for ad‑hoc court applications.

A particularly useful change arises when a sole trustee loses capacity. Previously, if the deed did not provide for replacement, a court order was often required just to swap in a new trustee. Under the new Act, the attorney or administrator with authority over the last continuing trustee’s financial matters can now appoint a new trustee (including themselves), without needing to go to court first, so long as no other mechanism in the trust is available.

This is a welcome change for many families and business structures, where delays or uncertainty around trustee succession can create unnecessary risk.

Stronger rights and protections for beneficiaries

From a beneficiary perspective, the reforms introduce greater transparency and more meaningful protections.

Beneficiaries now have clearer rights to access trust information as Trustees are required to maintain accurate records and make them available for inspection and copying upon request.  Where necessary, the beneficiary may ask the court to order disclosure.

There is also increased flexibility when it comes to financial support. The statutory allowance for applying capital toward a beneficiary’s maintenance, education, or advancement has increased substantially from the former $2,000 figure. The new threshold is $100,000 or half of the beneficiary’s presumptive entitlement, whichever is greater, which may reduce the need for court applications in many ordinary cases.

Importantly, where distribution issues arise, beneficiaries may now be able to take action directly against recipients of incorrectly distributed assets, rather than navigating more complex recovery pathways.

A more accessible approach to dispute resolution

By explicitly including the District Court into the statutory framework to hear trust-related matters below the $750,000 monetary threshold, the Act aims to make resolving trust disputes more efficient and accessible as not every trust-related application needs to be heard at the Supreme Court.

Furthermore, with expanded jurisdiction, the courts are better equipped to deal with trust-related issues, including appointing or removing trustees and reviewing trustee conduct. This should help reduce time and cost barriers that have historically discouraged parties from seeking resolution.

What you should do in practice

In many cases, these statutory changes will not require a complete overhaul of existing trust arrangements. However, they do create a new baseline for how trusts should be managed. We encourage you to consider taking the following actions now, depending on your capacity or role.

If you are a trustee:

  • Review the trust deed to identify provisions that may no longer operate as expected under the new Act, especially provisions dealing with powers, delegation, records, indemnities, and beneficiary access to information
  • Check and ensure all trustees meet the eligibility requirements under the Act
  • Check whether trust accounts, minutes, and supporting records are complete and kept separately for each trust
  • Review any trustee remuneration, commissions, or related-party payment arrangements to ensure they can be justified if challenged
  • Confirm that there is a practical process for replacing the trustee if a current trustee retires, dies, loses capacity, or becomes insolvent

If you are a family or business owner using a trust:

  • Review any family trust, unit trust, or trading trust used in your business structure to make sure it still achieves the intended commercial and succession outcomes under the new legislation
  • Consider whether the broader trustee powers affect long-term control, succession planning, or asset protection arrangements
  • Obtain legal and tax advice before changing a trust deed, because amendments may have consequences including tax, duty, and estate-planning implications

If you are a beneficiary:

  • Familiarise yourself with your rights obtain trust accounts, records, or explanations from the trustee
  • Seek prompt legal advice if you suspect trust property has been transferred, distributed, or dealt with in a way that may not comply with the trust

The bottom line

The Trusts Act 2025 (Qld) represents a meaningful shift towards clarity, accountability and modern practice.

For trustees, it brings greater flexibility, but also a higher standard of conduct. For beneficiaries, it delivers improved visibility and protection.

As with most legislative change, the opportunity lies in being proactive. A timely review now can help ensure your trust structure continues to operate as intended, without unnecessary risk.

Next steps

If you would like support reviewing your trust deed or understanding how these changes apply to your circumstances, our Wills & Estates team is here to help.