{"id":"perpetuities-and-accumulations-act-1968","name":"Perpetuities and Accumulations Act 1968","slug":"perpetuities-and-accumulations-act-1968","collection":"act","jurisdiction":"vic","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":173579,"registerId":"vic-perpetuities-and-accumulations-act-1968-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Perpetuities and Accumulations Act 1968","content":"Version No. 023\n\n**Perpetuities and Accumulations Act 1968**\n\n**No. 7750 of 1968**\n\nVersion incorporating amendments as at  \n1 August 2015\n\n**table of provisions**\n\n*Section Page*\n\n1 Short title and Act and rule against perpetuities to bind Crown 1\n\n2 Definitions 2\n\n3 Application 4\n\n4 Powers of appointment 4\n\n*Perpetuities* 5\n\n5 Power to specify perpetuity period 5\n\n6 \"Wait and see\" rule 6\n\n7 Power to apply to Court for declaration as to validity 7\n\n8 Presumptions and evidence as to future parenthood 8\n\n9 Reduction of age and exclusion of class members to avoid remoteness 9\n\n10 Unborn partner 10\n\n11 Dependent limitations 11\n\n12 Abolition of the double possibility rule 11\n\n13 Restrictions on the perpetuity rule 12\n\n14 Administrative powers of trustees 13\n\n15 Options 14\n\n16 Determinable interests 15\n\n17 Superannuation funds 16\n\n18 Non-charitable purpose trusts 17\n\n*Accumulations* 18\n\n19 Accumulation of income 18\n\nEndnotes 19\n\n1 General information 19\n\n2 Table of Amendments 21\n\n3 Amendments Not in Operation 23\n\n4 Explanatory details 24\n\n**Version No.** **023**\n\n**Perpetuities and Accumulations Act 1968**\n\n**No. 7750 of 1968**\n\nVersion incorporating amendments as at  \n1 August 2015\n\nAn Act to effect Reforms in the Rule of Law commonly known as the Rule against Perpetuities and to Abolish the Rule of Law commonly known as the Rule against Accumulation, and for other purposes.\n\n**BE IT ENACTED by the Queen's Most Excellent Majesty by and with the advice and consent of the Legislative Council and the Legislative Assembly of Victoria in this present Parliament assembled and by the authority of the same as follows (that is to say):**\n\n\t1 Short title and Act and rule against perpetuities to bind Crown\n\n(1) This Act may be cited as the **Perpetuities and Accumulations Act 1968**.\n\nCf. Law Reform (Property, Perpetuities and Succession) Act 1962 (W.A.) s. 2, Perpetuities and Accumu-lations Act 1964 (U.K.) s. 15, Perpetuities Act 1964 (N.Z.) s. 3.\n\n(2) This Act and the rule against perpetuities shall bind the Crown except in respect of dispositions of property made by the Crown.\n\nCf. W.A. Act s. 4, U.K. Act s. 15, N.Z. Act s. 2.\n\n\t2 Definitions\n\n(1) In this Act unless inconsistent with the context or subject-matter—\n\nS. 2(1) def. of *Court* amended by No. 110/1986  \ns. 140(2) (Sch.).\n\n***Court*** means the Supreme Court;\n\n***disposition*** includes the conferring or exercise of a power of appointment or any other power or authority to dispose of an interest in or a right over property and any other disposition of an interest in or right over property; and references to the interest disposed of shall be construed accordingly;\n\nS. 2(1) def. of *domestic partner* inserted by No. 27/2001 s. 3(Sch. 1 item 8.1), substituted by No. 12/2008 s. 73(1)(Sch. 1 item 46.1), amended by No. 4/2009 s. 37(Sch. 1 item 20.1).\n\n***domestic partner*** of a person  means—\n\n(a) a person who is in a registered domestic relationship with the person; or\n\n(b) a person to whom the person is not married but with whom the person is living as a couple on a genuine domestic basis (irrespective of gender);\n\n***instrument*** includes a will, and also includes an instrument, testamentary or otherwise exercising a power of appointment whether general or special but does not include an Act of Parliament;\n\nS. 2(1) def. of *partner* inserted by No. 27/2001 s. 3(Sch. 1 item 8.1).\n\n***partner*** of a person means the person's spouse or domestic partner;\n\n***power of appointment*** includes any discretionary power to transfer or grant or create a beneficial interest in property without the furnishing of valuable consideration;\n\n***property*** includes any interest in real or personal property and any thing in action;\n\nS. 2(1) def. of *spouse* inserted by No. 27/2001 s. 3(Sch. 1 item 8.1).\n\n***spouse*** of a person means a person to whom the person is married;'.\n\n***will*** includes a codicil.\n\n(2) For the purposes of this Act a disposition contained in a will shall be deemed to be made at the death of the testator.\n\n(3) For the purposes of this Act a person shall be treated as a member of a class if in his case all the conditions identifying a member of the class are satisfied, and shall be treated as a potential member if in his case only one or some of those conditions are satisfied but there is a possibility that the remainder will in time be satisfied.\n\nS. 2(4) inserted by No. 27/2001 s. 3(Sch. 1 item 8.2), substituted by No. 12/2008 s. 73(1)(Sch. 1 item 46.2).\n\n(4) For the  purposes of the definition of ***domestic partner*** in subsection  (1)—\n\nS. 2(4)(a) amended by No. 4/2009 s. 37(Sch. 1 item 20.2(a)).\n\n(a) ***registered domestic relationship*** has the same meaning as in the **Relationships Act 2008**; and\n\nS. 2(4)(b) amended by No. 4/2009 s. 37(Sch. 1 item 20.2(b)).\n\n(b) in determining whether persons who are not in a registered domestic relationship are domestic partners of each other, all the circumstances of their relationship are to be taken into account, including any one or more of the matters referred to in section 35(2) of the **Relationships Act 2008** as may be relevant in a particular case.\n\nCf. W.A. Act s. 3, U.K. Act s. 15, N.Z. Act s. 4.\n\n\t3 Application\n\n(1) Save as otherwise provided in this Act, this Act shall apply only in relation to instruments taking effect after the commencement of this Act, and in the case of an instrument whereby a special power of appointment is exercised shall apply only where the instrument creating the power takes effect after that commencement: Provided that section 4 shall apply in all cases for construing the foregoing reference to a special power of appointment.\n\n(2) This Act shall apply in relation to a disposition made otherwise than by an instrument as if the disposition had been contained in an instrument taking effect when the disposition was made.\n\nCf. W.A. Act s. 16, U.K. Act s. 7, N.Z. Act s. 5.\n\n\t4 Powers of appointment\n\nFor the purpose of the rule against perpetuities a power of appointment shall be treated as a special power unless—\n\n(a) in the instrument creating the power it is expressed to be exercisable by one person only; and\n\n(b) it could at all time during its currency when that person is of full age and capacity be exercised by him so as immediately to transfer to or otherwise vest in himself the whole of the interest governed by the power without the consent of any other person or compliance with any other condition, not being a formal condition relating only to the mode of exercise of the power:\n\nProvided that for the purpose of determining whether a disposition made under a power of appointment exercisable by will only is void for remoteness the power shall be treated as a general power where it would have fallen to be so treated if exercisable by deed.\n\n*Perpetuities*\n\nCf. W.A. Act s. 5, U.K. Act s. 1, N.Z. Act s. 6.\n\n\t5 Power to specify perpetuity period\n\n(1) Save as in this Act otherwise provided where the instrument by which any disposition is made so provides the perpetuity period applicable to the disposition under the rule against perpetuities instead of being of any other duration shall be such number of years not exceeding eighty as is specified in the instrument as the perpetuity period applicable to the disposition.\n\n(2) Subsection (1) shall not have effect where the disposition is made in exercise of a special power of appointment but where a period is specified under that subsection in the instrument creating such a power the period shall apply in relation to any disposition under the power as it applies in relation to the power itself.\n\n(3) If no period of years is specified in an instrument by which a disposition is made as the perpetuity period applicable to the disposition but a date certain is specified in the instrument as the date on which the disposition shall vest the instrument shall, for the purposes of this section, be deemed to specify as the perpetuity period applicable to the disposition a number of years equal to the number of years from the date of the taking effect of the instrument to the specified vesting date.\n\nCf. W.A. Act s. 7, U.K. Act s. 3, N.Z. Act s. 8.\n\n\t6 \"Wait and see\" rule\n\nS. 6(1) amended by No. 74/2000 s. 3(Sch. 1 item 97.1).\n\n(1) Where apart from the provisions of this section and of section 9 a disposition would be void on the ground that the interest disposed of might not become vested until too remote a time the disposition shall be treated until such time (if any) as it becomes established that the vesting must occur, if at all, after the end of the perpetuity period as if the disposition were not subject to the rule against perpetuities; and its becoming so established shall not affect the validity of anything previously done in relation to the interest disposed of by way of advancement, application of intermediate income or otherwise.\n\n(2) Where apart from the said provisions a disposition consisting of the conferring of a general power of appointment would be void on the ground that the power might not become exercisable until too remote a time the disposition shall be treated until such time (if any) as it becomes established that the power will not be exercisable within the perpetuity period as if the disposition were not subject to the rule against perpetuities.\n\n(3) Where apart from the said provisions a disposition consisting of the conferring of any power option or other right would be void on the ground that the right might be exercised at too remote a time the disposition shall be treated as regards any exercise of the right within the perpetuity period as if it were not subject to the rule against perpetuities and subject to the said provisions shall be treated as void for remoteness only if and so far as the right is not fully exercised within that period.\n\n(4) Nothing in this section makes any person a life in being for the purposes of ascertaining the perpetuity period unless the life of that person is one expressed or implied as relevant for this purpose by the terms of the disposition and would have been reckoned a life in being for such purpose if this section had not been enacted:\n\nProvided however that in the case of a disposition to a class of persons or to one or more members of a class, any person living at the date of the disposition whose life is so expressed or implied as relevant for any member of the class may be reckoned a life in being in ascertaining the perpetuity period.\n\nCf. W.A. Act s. 8, N.Z. Act s. 22.\n\n\t7 Power to apply to Court for declaration as to validity\n\n(1) A trustee of any property, or any person interested under or on the invalidity of, a disposition of property may at any time apply to the Court for a declaration as to the validity, in respect to the rule against perpetuities, of a disposition of that property.\n\n(2) The Court may, on an application under subsection (1), make a declaration on the basis of facts existing and events that have occurred at the time the declaration is made, as to the validity or otherwise of the disposition in respect of which the application is made; but the Court shall not make a declaration in respect of any disposition the validity of which cannot be determined at the time at which the Court is asked to make the declaration.\n\nCf. W.A. Act s. 6, U.K. Act s. 2, N.Z. Act s. 6.\n\n\t8 Presumptions and evidence as to future parenthood\n\n(1) Where in any proceedings there arises on the rule against perpetuities a question which turns on the capacity of a person to have a child at some future time, then—\n\n(a) it shall be presumed, subject to paragraph (b), that a male can have a child at the age of twelve years or over but not under that age and that a female can have a child at the age of twelve years or over but not under that age or over the age of fifty-five years; but\n\n(b) in the case of a living person evidence may be given to show that he or she will or will not be capable of having a child at the time in question.\n\n(2) Where any such question is decided by treating a person as incapable of having a child at a particular time and he or she does so, the Court may make such order as it thinks fit for placing the persons interested in the property comprised in the disposition so far as may be just in the position they would have held if the question had not been so decided.\n\n(3) Subject to subsection (2), where any such question is decided in relation to a disposition by treating a person as capable or incapable of having a child at a particular time then he or she shall be so treated for the purpose of any question which may arise on the rule against perpetuities in relation to the same disposition in any subsequent proceedings.\n\n(4) In the foregoing provisions of this section references to having a child are references to begetting or giving birth to a child; but those provisions (except subsection (1)(b)) shall apply in relation to the possibility that a person will at any time have a child by adoption, legitimation or other means as they apply to his or her capacity at that time to beget or give birth to a child.\n\nCf. No. 6344 s. 162. W.A. Act s. 9, U.K. Act s. 4, N.Z. Act s. 9.\n\n\t9 Reduction of age and exclusion of class members to avoid remoteness\n\n(1) Where a disposition is limited by reference to the attainment by any person or persons of a specified age exceeding twenty-one years and it is apparent at the time the disposition is made or becomes apparent at a subsequent time—\n\n(a) that the disposition would apart from this section be void for remoteness; but\n\n(b) that it would not be so void if the specified age had been twenty-one years—\n\nthe disposition shall be treated for all purposes as if instead of being limited by reference to the age in fact specified it had been limited by reference to the age nearest to that age which would if specified instead, have prevented the disposition from being so void.\n\n(2) Where in the case of any disposition different ages exceeding twenty-one years are specified in relation to different persons—\n\n(a) the reference in paragraph (b) of subsection (1) to the specified age shall be construed as a reference to all the specified ages; and\n\n(b) that subsection shall operate to reduce each such age so far as is necessary to save the disposition from being void for remoteness.\n\n(3) Where the inclusion of any persons being potential members of a class or unborn persons who at birth would become members or potential members of the class prevents the foregoing provisions of this section from operating to save a disposition from being void for remoteness those persons shall thenceforth be deemed for all the purposes of the disposition to be excluded from the class and the said provisions shall thereupon have effect accordingly.\n\n(4) Where in the case of a disposition to which subsection (3) does not apply it is apparent at the time the disposition is made or becomes apparent at a subsequent time that apart from this subsection the inclusion of any persons, being potential members of a class or unborn persons who at birth could become members or potential members of the class would cause the disposition to be treated as void for remoteness those persons shall unless their exclusion would exhaust the class thenceforth be deemed for all the purposes of the disposition to be excluded from the class.\n\n(5) Where this action has effect in relation to a disposition to which section 6 applies the operation of this section shall not affect the validity of anything previously done in relation to the interest disposed of by way of advancement, application of intermediate income or otherwise.\n\nCf. W.A. Act s. 12, U.K. Act s. 5, N.Z. Act s. 13.\n\nS. 10 (Heading) inserted by No. 27/2001 s. 3(Sch. 1 item 8.3).\n\nS. 10 amended by No. 27/2001 s. 3(Sch. 1 item 8.4).\n\n\t10 Unborn partner\n\nThe surviving partner of a person who is a life in being for the purposes of the rule against perpetuities shall be deemed to be a life in being for the purpose of—\n\nS. 10(a) amended by No. 27/2001 s. 3(Sch. 1 item 8.4).\n\n(a) a disposition in favour of that surviving partner; and\n\nS. 10(b) amended by No. 27/2001 s. 3(Sch. 1 item 8.4).\n\n(b) a disposition in favour of a charity which attains or of a person who attains or of a class the members of which attain according to the terms of the disposition a vested interest on or after the death of the survivor of the said person who is a life in being and that surviving partner, or on or after the death of that surviving partner or on or after the happening of any contingency during her or his lifetime.\n\nCf. W.A. Act s. 13, U.K. Act s. 6, N.Z. Act s. 14.\n\n\t11 Dependent limitations\n\nA disposition shall not be treated as void for remoteness by reason only that the interest disposed of is ulterior to and dependent upon an interest under a disposition which is so void, and the vesting of an interest shall not be prevented from being accelerated on the failure of a prior interest by reason only that the failure arises because of remoteness.\n\nNo. 6344 s. 161.\n\n\t12 Abolition of the double possibility rule\n\n(1) The rule of law prohibiting the limitation, after a life interest to an unborn person, of an interest in land to the unborn child or other issue of an unborn person is hereby declared to have been abolished by section 161 of the **Property Law Act 1928**, but without prejudice to any other rule relating to perpetuities.\n\n(2) This section shall apply only to limitations or trusts created by an instrument within the meaning of the **Property Law Act 1958** coming into operation after the commencement of the **Property Law Act 1928**.\n\nNo. 6344 s. 161.\n\n\t13 Restrictions on the perpetuity rule\n\n(1) For removing doubts, it is hereby declared that the rule of law relating to perpetuities does not apply and shall be deemed never to have applied—\n\n(a) to any power to distrain on or to take possession of land or the income thereof given by way of indemnity against a rent, whether charged upon or payable in respect of any part of that land or not; or\n\n(b) to any rentcharge created only as an indemnity against another rentcharge, although the indemnity rentcharge may arise or become payable only on breach of a condition or stipulation; or\n\n(c) to any power, whether exercisable on breach of a condition or stipulation or not, to retain or withhold payment of any instalment of a rentcharge as an indemnity against another rentcharge; or\n\n(d) to any grant, exception or reservation of and right of entry on, or user of, the surface of land or of any easements, rights or privileges over or under land for the purpose of—\n\n(i) winning, working, inspecting, measuring, converting, manufacturing, carrying away and disposing of mines and minerals;\n\n(ii) inspecting, grubbing up, felling and carrying away timber and other trees, and the tops and lops thereof;\n\n(iii) executing repairs, alterations or additions to any adjoining land, or the buildings and erections thereon;\n\n(iv) constructing, laying down, altering, repairing, renewing, cleansing and maintaining sewers, watercourses, cesspools, gutters, drains, water-pipes, gas-pipes, electric wires or cables or other like works.\n\n(2) This section shall apply to instruments within the meaning of the **Property Law Act 1958** coming into operation before or after the commencement of that Act.\n\nCf. No. 6401 s. 73, U.K. Act s. 8, N.Z. Act s. 16.\n\n\t14 Administrative powers of trustees\n\n(1) The rule against perpetuities shall not operate and shall be deemed never to have operated to invalidate a power conferred on trustees or other persons to sell lease exchange or otherwise dispose of any property for full consideration or to do any other act in the administration (as opposed to the distribution) of any property, and shall not prevent and shall be deemed never to have prevented the payment to trustees or other persons of reasonable remuneration for their services.\n\n(2) This section—\n\n(a) shall not render any trustee liable for any acts done prior to the commencement of the **Trustee Act 1953** for which such trustee would not have been liable if this section and any corresponding previous enactment had not been enacted or for any acts done after the commencement of the **Trustee Act 1953** but before the commencement of this Act for which such trustee would not have been liable if this section had not been enacted;\n\n(b) shall not enable any person to recover any money distributed or paid under any trust before the commencement of the **Trustee Act 1953** if he could not have recovered such money if this section and any corresponding previous enactment had not been enacted or any money distributed or paid under any trust after the commencement of the **Trustee Act 1953** but before the commencement of this Act if he could not have recovered such money if this section had not been enacted.\n\nCf. W.A. Act s. 14, U.K. Act s. 9, 10, N.Z. Act s. 17.\n\n\t15 Options\n\n(1) The rule against perpetuities shall not apply to a disposition consisting of the conferring of an option to acquire for valuable consideration an interest reversionary (whether directly or indirectly) on the term of a lease if—\n\n(a) the option is exercisable only by the lessee or his successors in title; and\n\n(b) it ceases to be exercisable at or before the expiration of one year following the determination of the lease.\n\nThis subsection shall apply in relation to an agreement for a lease as it applies in relation to a lease, and \"lessee\" shall be construed accordingly.\n\n(2) An option to acquire an interest in land (not being an option to which subsection (1) refers) or a right of pre-emption in respect of land, which according to its terms is or may be exercisable at a date more than twenty-one years from the date of its grant shall after the expiration of twenty-one years from the date of its grant be void and not exercisable by any person and no remedy shall lie in contract or otherwise for giving effect to it or making restitution for its lack of effect, but—\n\n(a) this subsection shall not apply to an option or right of pre-emption conferred by will; and\n\n(b) nothing in this subsection shall affect an option for renewal or right of pre-emption contained in a lease or an agreement for a lease.\n\nCf. W.A. Act s. 15, U.K. Act s. 12, N.Z. Act s. 18.\n\n\t16 Determinable interests\n\n(1) The rule against perpetuities shall apply—\n\n(a) to a possibility of reverter in land on the determination of a determinable fee simple; in which case if the fee simple does not determine within the perpetuity period it shall thereafter continue as a fee simple absolute;\n\n(b) to a possibility of a resulting trust on the determination of any other determinable interest in property; in which case if the first interest created by the trust does not determine within the perpetuity period the interest it creates shall thereafter continue as an absolute interest;\n\n(c) to a right of entry for condition broken the exercise of which may determine a fee simple subject to a condition subsequent and to an equivalent right in the case of property other than land; in which case if the right of entry or other right is not exercised within the perpetuity period the fee simple shall thereafter continue as an absolute interest and any such other interest in property shall thereafter continue free from the condition.\n\n(2) This section shall apply whether the determinable or conditional disposition is charitable or not except that the rule against perpetuities shall not apply to a gift over from one charity to another.\n\n(3) Where a disposition is subject to any provision that causes an interest to which paragraph (a) or paragraph (b) of subsection (1) applies to be determinable, or to any condition subsequent giving rise on breach thereof to a right of re-entry or an equivalent right in the case of property other than land, or to any exception or reservation the disposition shall be treated for the purposes of this Act as including a separate disposition of any rights arising by virtue of the provision condition subsequent exception or reservation.\n\nNo. 6401 s. 73.\n\nCf. W.A. Act s. 19, N.Z. Act s. 19.\n\n\t17 Superannuation funds\n\n(1) The rule of law known as the rule against perpetuities shall not apply and shall be deemed never to have applied so as to render void—\n\nS. 17(1)(a) amended by Nos 74/2000 s. 3(Sch. 1 item 97.2), 27/2001 s. 3(Sch. 1 item 8.5).\n\n(a) a trust or fund established for the purpose of making provision by way of assistance, benefits, superannuation, allowances, gratuities or pensions for the directors, officers, servants or employees of any employer or the partners children grandchildren parents dependants or legal personal representatives of any such directors officers servants or employees or for any persons duly selected or nominated for that purpose by any such directors officers servants or employees pursuant to the provisions of such trust or fund; or\n\nS. 17(1)(b) amended by Nos 74/2000 s. 3(Sch. 1 item 97.2), 27/2001 s. 3(Sch. 1 item 8.5).\n\n(b) a trust or fund established for the purpose of making provision by way of superannuation for persons (not being employees) engaged in any lawful profession trade occupation or calling or the partners children grandchildren parents dependants or legal personal representatives of any of those persons or for any persons duly selected or nominated for that purpose pursuant to the provisions of the trust or fund.\n\n(2) This section—\n\n(a) shall not render any trustee liable for any acts done prior to the commencement of the **Trustee Act 1953** for which such trustee would not have been liable if this section and any corresponding previous enactment had not been enacted or for any acts done after the commencement of the **Trustee Act 1953** but before the commencement of this Act for which such trustee would not have been liable if this section had not been enacted;\n\n(b) shall not enable any person to recover any money distributed or paid under any trust before the commencement of the **Trustee Act 1953** if he could not have recovered such money if this section and any corresponding previous enactment had not been enacted or any money distributed or paid under any trust after the commencement of the **Trustee Act 1953** but before the commencement of this Act if he could not have recovered such money if this section had not been enacted.\n\nCf. U.K. Act s. 15, N.Z. Act s. 20.\n\n\t18 Non-charitable purpose trusts\n\n(1) Except as provided in subsection (2) nothing in this Act shall affect the operation of the rule of law rendering non-charitable purpose trusts and trusts for the benefit of corporations which are not charities void for remoteness in cases where the trust property may be applied for the purposes of the trusts after the end of the perpetuity period.\n\n(2) If any such trust is not otherwise void the provisions of sections 5 and 6 shall apply to it and the property subject to the trust may be applied for the purposes of the trust during the perpetuity period but not thereafter.\n\n*Accumulations*\n\nCf. W.A. Act s. 17, U.K. Act ss 13, 14, N.Z. Act s. 21.\n\n\t19 Accumulation of income\n\n(1) Where property is settled or disposed of in such manner that the income thereof may be or is directed to be accumulated wholly or in part the power or direction to accumulate that income shall be valid if the disposition of the accumulated income is or may be valid but not otherwise.\n\n(2) Nothing in this section shall affect the power of any person or persons to terminate an accumulation that is for his or her benefit and any jurisdiction or power of the Court to maintain or advance out of accumulations or any power of a trustee under the **Trustee Act 1958** or under any other Act or law or under any instrument creating a trust or making a disposition.\n\nHeading preceding s. 20 repealed by No. 21/2015 s. 3(Sch. 1 item 38).\n\nS. 20 repealed by No. 28/2007 s. 3(Sch. item 51).\n\n* * * * *\n\n\n\nEndnotes\n\n1 General information\n\nSee [www.legislation.vic.gov.au](http://www.legislation.vic.gov.au) for Victorian Bills, Acts and current Versions of legislation and up-to-date legislative information.\n\nThe **Perpetuities and Accumulations Act 1968** was assented to on 10 December 1968 and came into operation on 10 December 1968.\n\nINTERPRETATION OF LEGISLATION ACT 1984 (ILA)\n\nStyle changes\n\nSection 54A of the ILA authorises the making of the style changes set out in Schedule 1 to that Act.\n\nReferences to ILA s. 39B\n\nSidenotes which cite ILA s. 39B refer to section 39B of the ILA which provides that where an undivided section or clause of a Schedule is amended by the insertion of one or more subsections or subclauses, the original section or clause becomes subsection or subclause (1) and is amended by the insertion of the expression \"(1)\" at the beginning of the original section or clause.\n\nInterpretation\n\nAs from 1 January 2001, amendments to section 36 of the ILA have the following effects:\n\n• Headings\n\nAll headings included in an Act which is passed on or after 1 January 2001 form part of that Act. Any heading inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. This includes headings to Parts, Divisions or Subdivisions in a Schedule; sections; clauses; items; tables; columns; examples; diagrams; notes or forms. See section 36(1A)(2A).\n\n• Examples, diagrams or notes\n\nAll examples, diagrams or notes included in an Act which is passed on or after 1 January 2001 form part of that Act. Any examples, diagrams or notes inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, form part of that Act. See section 36(3A).\n\n• Punctuation\n\nAll punctuation included in an Act which is passed on or after 1 January 2001 forms part of that Act. Any punctuation inserted in an Act which was passed before 1 January 2001, by an Act passed on or after 1 January 2001, forms part of that Act. See section 36(3B).\n\n• Provision numbers\n\nAll provision numbers included in an Act form part of that Act, whether inserted in the Act before, on or after 1 January 2001. Provision numbers include section numbers, subsection numbers, paragraphs and subparagraphs. See section 36(3C).\n\n• Location of \"legislative items\"\n\nA \"legislative item\" is a penalty, an example or a note. As from 13 October 2004, a legislative item relating to a provision of an Act is taken to be at the foot of that provision even if it is preceded or followed by another legislative item that relates to that provision. For example, if a penalty at the foot of a provision is followed by a note, both of these legislative items will be regarded as being at the foot of that provision. See section 36B.\n\n• Other material\n\nAny explanatory memorandum, table of provisions, endnotes, index and other material printed after the Endnotes does not form part of an Act.  \nSee section 36(3)(3D)(3E).\n\n2 Table of Amendments\n\nThis publication incorporates amendments made to the **Perpetuities and** **Accumulations Act 1968** by Acts and subordinate instruments.\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n**Supreme Court Act 1986, No. 110/1986**\n\n| Assent Date: | 16.12.86 |\n| --- | --- |\n| Commencement Date: | 1.1.87: s. 2 |\n| Current State: | All of Act in operation |\n\n\n**Statute Law Revision Act 2000, No. 74/2000**\n\n| Assent Date: | 21.11.00 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. 1 item 97) on 22.11.00: s. 2(1) |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and** **Accumulations Act 1968** |\n\n\n**Statute Law Amendment (Relationships) Act 2001, No. 27/2001**\n\n| Assent Date: | 12.6.01 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. 1 item 8) on 28.6.01: Government Gazette 28.6.01 p. 1428 |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and** **Accumulations Act 1968** |\n\n\n**Statute Law Revision Act 2007, No. 28/2007**\n\n| Assent Date: | 26.6.07 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. item 51) on 27.6.07: s. 2(1) |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and** **Accumulations Act 1968** |\n\n\n**Relationships Act 2008, No. 12/2008**\n\n| Assent Date: | 15.4.08 |\n| --- | --- |\n| Commencement Date: | S. 73(1)(Sch. 1 item 46) on 1.12.08: s. 2(2) |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and Accumulations Act 1968** |\n\n\n**Relationships Amendment (Caring Relationships) Act 2009, No. 4/2009**\n\n| Assent Date: | 10.2.09 |\n| --- | --- |\n| Commencement Date: | S. 37(Sch. 1 item 20) on 1.12.09: s. 2(2) |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and Accumulations Act 1968** |\n\n\n**Statute Law Revision Act 2015, No. 21/2015**\n\n| Assent Date: | 16.6.15 |\n| --- | --- |\n| Commencement Date: | S. 3(Sch. 1 item 38) on 1.8.15: s. 2(1) |\n| Current State: | This information relates only to the provision/s amending the **Perpetuities and** **Accumulations Act 1968** |\n\n\n–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––\n\n3 Amendments Not in Operation\n\nNot updated for this publication.\n\n4 Explanatory details\n\nNo entries at date of publication.","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"Based on the available text, there is insufficient detail to determine whether the scope changed from the original bill. The Act appears to remain in its consolidated form as originally intended — a reform of the common law rules against perpetuities and accumulations for Victoria. No scope change is evident from the metadata provided."},"complexity_factors":["Rooted in centuries of complex common law doctrine around the 'rule against perpetuities' — a notoriously difficult legal concept even for lawyers","Requires understanding of trust law, estate law, and property law simultaneously","Involves technical rules for calculating validity periods (often involving lives in being plus 21 years, or a fixed period)","Contains 'wait and see' provisions where the validity of an arrangement cannot be determined until future events occur","Interacts with other legislation covering wills, trusts, and property","Historical legal terminology (perpetuities, accumulations, vesting, remainder interests) is deeply unfamiliar to non-lawyers","Practical application requires case-by-case analysis of specific legal instruments","The 1968 vintage means it predates modern plain-language drafting standards, likely using dense legal prose"],"plain_english_summary":"## Perpetuities and Accumulations Act 1968 (Victoria)\n\nThis is a Victorian law that deals with two old legal concepts that govern how long you can control what happens to property after you die or give it away.\n\n**What is a 'perpetuity'?**\nA perpetuity is when someone tries to tie up property (like land or money) so it can't be freely sold or transferred for a very long time — sometimes forever. For example, a will that says 'this land must stay in our family and can never be sold' could create a perpetuity.\n\n**What is an 'accumulation'?**\nAn accumulation is when income from a trust or estate is built up (accumulated) rather than paid out to beneficiaries. Without limits, a trust could theoretically accumulate income for generations.\n\n**What does this Act do?**\n- It sets **time limits** on how long property can be 'locked up' or controlled beyond the grave\n- It prevents people from creating arrangements that tie property up indefinitely, which would clog up the property market and create uncertainty\n- It provides rules for working out whether a particular arrangement goes on for too long (and what happens if it does)\n- It limits how long income can be accumulated in a trust\n\n**Who does this affect?**\n- People writing **wills** or setting up **trusts**\n- **Lawyers and estate planners** drafting these documents\n- **Beneficiaries** of estates and trusts\n- **Property owners** who receive property subject to old conditions\n\n**Why does it matter?**\nWithout rules like this, wealthy families could lock up property and wealth for centuries, preventing it from being used productively or traded freely. This law helps keep property in circulation and protects future generations from being bound by the decisions of long-dead ancestors.\n\n*Note: This analysis is based on limited text extracted from the legislation. The Act is a Victorian law (Act No. 7750/1968) that remains in force.*"},"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":true,"description":"The original 1968 Act focused on reforming perpetuities and accumulations in traditional property law contexts. Over time, amendments have significantly expanded scope to cover modern relationship structures—specifically, the 2001 and 2008 amendments introduced 'domestic partner' concepts, and the 2000 amendments updated superannuation provisions. Section 10 was effectively rewritten to recognise de facto and same-sex relationships, moving far beyond the original 1968 concept of 'spouse'. Additionally, Section 20 was repealed in 2007, removing what was likely a transitional or savings provision, further shifting the Act's operational framework."},"complexity_factors":["Multiple cross-references to other Victorian Acts (Property Law Act 1958, Trustee Act 1958, Relationships Act 2008)","Complex conditional logic in Section 4 defining general vs special powers of appointment","Nested exceptions and provisos throughout (e.g., Section 4 has a main rule, two conditions, and a proviso; Section 6 has four subsections with multiple provisos)","Technical legal terminology requiring definitions (disposition, instrument, power of appointment, lives in being, vesting)","Interaction between saving provisions (Section 9) and the wait-and-see rule (Section 6) creates layered applicability","Retrospective and prospective application rules in Section 3 and saving clauses in Sections 14(2) and 17(2)","Multiple amendments over time creating fragmented text (e.g., domestic partner definitions inserted and substituted across different amending Acts)"],"plain_english_summary":"This Victorian Act reforms two old English legal rules that restricted how long property could be tied up in trusts or future arrangements.\n\n**What it does:**\n\n**1. Relaxes the \"Rule Against Perpetuities\"**\nThis ancient rule prevented people from creating trusts or gifts that delayed ownership too far into the future (originally measured by \"lives in being\" plus 21 years). The Act modernises this by:\n- Allowing people to set a fixed period of up to 80 years instead of using lives in being (Section 5)\n- Introducing a \"wait and see\" approach—rather than guessing if a gift might vest too remotely at the start, you wait to see if it actually does (Section 6)\n- Providing mechanisms to save gifts that would otherwise fail by reducing ages or excluding certain beneficiaries (Section 9)\n- Treating surviving domestic partners as \"lives in being\" for measuring time periods (Section 10)\n- Exempting superannuation funds and certain administrative powers from the rule entirely (Sections 14, 17)\n\n**2. Abolishes the \"Rule Against Accumulations\"**\nPreviously, income from trust property had to be distributed within certain time limits. Section 19 abolishes these restrictions, allowing income to accumulate (build up) provided the underlying disposition is valid.\n\n**Who it affects:**\n- People writing wills or creating trusts\n- Superannuation funds and their members\n- Trustees managing property\n- Anyone dealing with options to buy property or lease renewals\n\n**Why it matters:**\nWithout these reforms, many modern financial arrangements (like superannuation) would be legally void. The Act gives Victorians more flexibility in estate planning while still preventing property from being tied up indefinitely."},"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The Act's core purpose in the preamble is to reform the rule against perpetuities and abolish the rule against accumulation. Subsequent amendments recorded in the text and endnotes have modified scope and definitions: for example, definitions of \"domestic partner\", \"partner\" and \"spouse\" were inserted or amended in section 2 (see s2 notes referencing Statute Law Amendment (Relationships) Act 2001, Relationships Act 2008 and Relationships Amendment (Caring Relationships) Act 2009), the \"wait and see\" provision was amended (section 6 as noted), and section 10 (\"Unborn partner\") and section 17 (superannuation exemption) were amended to extend treatment to partners and nominated persons (see notes to sections 10 and 17). The amendment table in the endnotes records further legal changes (e.g. Supreme Court Act 1986, Statute Law Revision Acts). These amendments expand and clarify who counts as family for perpetuity purposes, confirm and adapt trustee and superannuation exemptions, and alter procedural and substantive treatment over time, so the Act's operational scope has changed from the original 1968 enactment in those specified respects (see sections 2, 6, 10, 17 and the Table of Amendments)."},"complexity_factors":["Technical property-law concepts (perpetuity, vesting, reverter, determinable interests) requiring specialist interpretation (see sections 5, 6, 16).","Multiple remedial mechanisms and exceptions (\"wait and see\" in s6; age-reduction and class-exclusion in s9; exclusions in s13) that interact in fact-sensitive ways.","Frequent cross-references to other statutes and prior enactments (Property Law Act, Trustee Acts, Relationships Act) and transitional savings (see sections 12, 14, 17 and section 2 notes).","Judicial discretion in declarations and remedial orders (Court's role in s7 and powers under s8(2)), producing case-by-case outcomes.","Administrative consequences for trustees (protected powers and remuneration in s14) and the need for trustee decisions under the Act.","Different rules for specific instruments and interests (options and pre-emptions in s15; superannuation in s17; non-charitable purpose trusts in s18) increasing rule diversity.","Amendment history and evolving definitions (e.g. insertion/amendment of \"domestic partner\", changes noted in s2 and amendment table) mean practitioners must track statutory changes.","Potential for litigation driven by factual questions about future events (e.g. future parenthood under s8) and timing determinations under s6."],"plain_english_summary":"What this law changes (mechanics)\n\n- The Act changes how long property interests and trust benefits can remain unsettled before they must vest (the \"rule against perpetuities\"). It lets the creator of an instrument (for example a will or trust) specify a perpetuity period up to 80 years for dispositions that fall under the rule (section 5).\n\n- The Act adopts a \"wait and see\" approach: a disposition that might be void because vesting could be too remote is treated as valid until it becomes established that vesting must occur after the chosen perpetuity period (section 6).\n\n- Trustees and interested persons may ask the Supreme Court for a declaration about whether a disposition is valid under the perpetuity rules (section 7). The Court decides based on facts and events as they exist at the time of the application (section 7(2)).\n\n- The Act defines key words (for example \"disposition\", \"instrument\", \"partner\", \"domestic partner\", \"power of appointment\") and applies to instruments taking effect after the Act commenced, subject to particular transitional rules (sections 2 and 3).\n\n- It contains a set of rules to avoid invalidity for remoteness by reducing required ages or excluding potential unborn class members where needed to save dispositions (section 9), and it prescribes presumptions about future parenthood (section 8).\n\n- The Act lists a number of exceptions and specific treatments: certain estate rights and easements are outside the perpetuity rule (section 13); administrative powers of trustees (selling, leasing, paying remuneration) are not invalidated by the perpetuity rule (section 14); options tied to leases have special treatment and most land options or rights of pre-emption are void if exercisable beyond 21 years from grant (section 15); determinable interests and rights of re-entry are dealt with so that interests may continue as absolute interests if the conditional right is not exercised within the perpetuity period (section 16).\n\n- Superannuation and employer or occupational benefit trusts are expressly exempted from the rule against perpetuities (section 17).\n\n- The Act deals with accumulation of income: accumulation directions are valid only if the ultimate disposition of the accumulated income would itself be valid (section 19). It preserves trustee powers to terminate accumulations for the beneficiary and the Court's powers in relation to accumulations (section 19(2)).\n\nWho it affects and who decides\n\n- Creators of wills, trusts or other dispositions (settlors, testators, or persons exercising powers of appointment) are affected because they can set a perpetuity period up to 80 years (section 5) and must draft with the Act's rules in mind (sections 2–5).\n\n- Trustees bear administrative and compliance responsibilities. The Act protects trustees' administrative acts from being invalidated by the perpetuity rule (section 14(1)) and permits reasonable remuneration (section 14(1)). Trustees can apply to the Court for declaratory relief (section 7(1)).\n\n- Beneficiaries and potential class members are affected by mechanisms that can reduce ages or exclude unborn/potential class members to avoid remoteness (section 9). An \"unborn partner\" of a life in being can be treated as a life in being for certain dispositions (section 10).\n\n- The Supreme Court makes binding decisions about validity under the rule (section 7). The Court also has power to order adjustments when factual findings about future parenthood are made (section 8(2)).\n\nWhy the Act says it exists (official rationale) and how that interacts with costs and incentives\n\n- The preamble states the Act \"effects reforms in the rule ... against perpetuities and abolishes the rule ... against accumulation.\" That is the stated purpose. Mechanically, the Act implements that by: allowing an express perpetuity period up to 80 years (section 5); replacing earlier technical rules with the \"wait and see\" approach (section 6); and subjecting accumulations to the validity of the ultimate disposition (section 19).\n\n- Who pays and who bears costs: parties who trigger litigation or need certainty bear the direct cost of Court applications under section 7. Trustees bear administrative and decision costs to apply the Act's mechanisms (sections 6, 9, 14). Beneficiaries may lose or have their interests altered (for example by exclusion from a class under section 9) which has distributional effects but is implemented by the instrument's terms or Court orders.\n\nCompliance burden and implementation risk\n\n- Compliance requires drafters of wills and trusts to choose whether to specify a perpetuity period (section 5) and to anticipate the Act's remedial devices (sections 6 and 9). That creates drafting complexity.\n\n- Uncertainty remains where future facts determine validity; parties may need to use the Court's declaratory procedure (section 7), which raises litigation costs and timing risks. Section 6's \"wait and see\" rule delays final invalidity determinations but does not remove the need for eventual resolution.\n\nBureaucratic or judicial discretion\n\n- The Supreme Court has discretion to declare validity based on facts at the time of application (section 7(2)) and to make orders to put parties in the position they would have been in had a factual finding about future parenthood been otherwise (section 8(2)). Those are points of judicial discretion affecting outcomes.\n\nEffects on private choice, enterprise and ownership\n\n- Contract freedom and ownership duration: Settlors can extend control over property for up to 80 years by specifying a perpetuity period (section 5). This gives private parties more ability to design long-running arrangements, subject to the Act's other rules.\n\n- Land transactions and market effects: most options or pre-emption rights in land that are or may be exercisable beyond 21 years are void (section 15(2)). That narrows the effective lifetime of long-term options in land, which may affect long-range planning for property developers and owners.\n\n- Trustees and funds: trustees gain statutory protection for administrative acts and remuneration (section 14(1)), and employer/occupational superannuation funds are removed from the rule (section 17), enabling long-term fund governance and benefit arrangements without perpetuity invalidation.\n\nTrade-offs, opportunity costs and concentrated vs diffuse effects\n\n- Concentrated beneficiaries: trustees, superannuation funds and settlors who draft long-term arrangements gain legal certainty (sections 14 and 17). The legal ability to specify long durations (section 5) concentrates benefits for those who design instruments accordingly.\n\n- Diffuse costs: potential increases in litigation (section 7) and the administrative load of applying remedial devices (sections 6 and 9) are borne by trustees, beneficiaries and courts, spreading costs across parties and the legal system.\n\n- Trade-offs arise between providing settlors greater freedom to set long durations (section 5) and preserving certainty and marketability in property rights (section 15 restricts long options on land).\n\nImplementation detail risks\n\n- Cross-references to other statutes and transitional rules (sections 2, 3 and the Act's notes about the Property Law Act and Trustee Acts) mean practitioners must track how this Act interacts with other legislation (see, for example, section 12's link to the Property Law Act 1928 and section 14's references to the Trustee Act 1953).\n\nSummary (plain terms)\n\n- The Act modernises the technical rule against perpetuities by allowing a specified perpetuity period (up to 80 years), using a \"wait and see\" approach to avoid premature invalidation, protecting trustees' administrative powers and remuneration, exempting superannuation and employer/occupational benefit trusts from the rule, and regulating accumulations so that accumulated income is effective only where the ultimate disposition is valid. The Supreme Court is the decision-maker for unresolved validity questions. These changes shift drafting choices onto instrument creators (who can specify length), shift some certainty and litigation costs onto trustees and beneficiaries (who may need court declarations), and alter the legal landscape for long-term land options and trust arrangements (sections 5, 6, 7, 14, 15, 17, 19)."}},"importantCases":[],"_links":{"self":"/api/acts/perpetuities-and-accumulations-act-1968","history":"/api/acts/perpetuities-and-accumulations-act-1968/history","analysis":"/api/acts/perpetuities-and-accumulations-act-1968/analysis","conflicts":"/api/acts/perpetuities-and-accumulations-act-1968/conflicts","importantCases":"/api/acts/perpetuities-and-accumulations-act-1968/important-cases","documents":"/api/acts/perpetuities-and-accumulations-act-1968/documents"}}