The Trusts Act 2025 (Qld) (the Act) commenced on 28 April 2026, replacing the Trusts Act 1973 (Qld) and introducing a modernised framework for trust administration in Queensland.

One of the most significant reforms for charities is a new, streamlined process for applying cy pres schemes, allowing certain charitable trusts to change their purposes without the need for court proceedings.

Key takeaways

• Trustees of eligible charitable trusts can now apply to the Attorney-General—rather than the Court—to approve a cy pres scheme.
• The new process is limited to trusts with property of $750,000 or less.
• The trustee must be the applicant, and the trust must not have previously been varied by a court-approved scheme.
• The reform is designed to reduce cost and delay, ensuring more charitable funds are preserved for charitable purposes.

What is a cy pres scheme?

A cy pres scheme is a legal mechanism that allows a charitable trust’s property to be applied to purposes that are as near as possible to the original charitable intention, where those original purposes can no longer be fulfilled.

This may arise where:

• the named charity no longer exists, where a specific charity is named to receive a bequest in a will created many years before the testator’s death;
• the original purpose has become impossible, impracticable, or obsolete; or
• the purpose has already been fulfilled and a surplus remains.

The law favours charities and seeks to uphold charitable trusts. In such cases, there is an ability to apply to have the trust property applied cy pres, meaning as near as possible to the original charitable intent of the trust. If property has been bequeathed to a charity that no longer exists, a cy pres scheme may enable the property to be gifted to a charity with similar charitable objects.

Click here to read our previous article which explains cy pres applications in more detail.

Trustees have a duty to secure the effective use of the trust property for charitable purposes in seeking to have the property applied cy pres where required.[1]

How did the old scheme operate?

Previously, a cy pres scheme could only be approved by the Supreme Court of Queensland, regardless of the value of the trust property.

This created practical challenges:

• Cost: Legal and court costs could be significant relative to the value of the trust;
• Delay: Court processes could materially delay estate administration; and
• Inefficiency: In lower-value trusts, the cost of obtaining a cy pres order could outweigh the benefit of the gift.

In some cases, trustees and personal representatives were forced to decline charitable bequests because pursuing a cy pres application was not commercially viable.

What changes have been introduced?

Under Part 12, Division 3 of the new Trusts Act, trustees of certain charitable trusts may apply directly to the Attorney-General for approval of a cy pres scheme, instead of applying to the Court.

A trustee may apply to the Attorney-General where:

1. The applicant is the trustee of the charitable trust. This differs from an application to the Court, where the trustee, the Attorney-General, or a person or charity ‘interested in the proper administration of the trust’, can apply.[2]
2. The purposes of the trust have not previously been changed under a cy pres scheme via application to the Court.[3]
3. The total value of the trust property does not exceed $750,000.[4]

If a person or charity other than the trustee seeks to apply, the purposes of the trust have been previously changed, or the value of the trust property exceeds the above threshold, an application may still be made to the Court under the new Trusts Act.[5]

An application to the Attorney-General involves preparation of a prescribed form, supporting documentation, and payment of a fee ranging from $500 – $1,250 depending on the circumstances.

Practical implications for trustees of charitable trusts

The new regime has several important implications for trustees of charitable trusts:

1. Lower cost barrier

The Attorney-General process provides a more proportionate pathway for smaller trusts, reducing the risk that charitable gifts are abandoned due to cost.

2. Greater expectation on trustees

Trustees are expected to take proactive steps to resolve failed charitable purposes. The availability of a simpler process reduces the justification for inaction.

3. Earlier identification of issues

Personal representatives and trustees should review charitable gifts early in the administration process to identify:

• defunct charities;
• outdated purposes; or
• impracticable conditions.

4. Governance and compliance risk

Failure to properly deal with failed charitable purposes may expose trustees to breach of trust risk, particularly where property is not applied in accordance with the donor’s intention.

 

Have a Question?

 

If you need assistance or legal advice regarding the above, Vocare Law can well assist. Contact our office on 1300-VOC-LAW / 1300-862-529 or email: enquiry@vocarelaw.com.au

This article was written by Sarah Gates and Jessica Lipsett.

**The information contained herein does not, and is not intended to, constitute legal advice and is for general informational purposes only. 

 

 

[1] Trusts Act 2025 (Qld) s 211 (‘Trusts Act’).

[2] Ibid ss 195, 202(1)(a).

[3] Ibid s 202(1)(b).

[4] Ibid s 202(1)(c); District Court of Queensland Act 1967 (Qld) s 68(2).

[5] Trusts Act ss 195, 201.