Page 77
Authorised by the Parliamentary Counsel
[s 100]
Trusts Bill 2025
Part 7 General powers of trustees
Subdivision 3 Revocation of delegation
100 Revocation by trustee—instrument of revocation
A trustee may revoke the delegation of a matter under section
95 by giving the delegate an instrument, signed by the trustee,
revoking the delegation.
101 Revocation by trustee—impaired capacity for
administering trust
The delegation of a matter under section 95 is revoked if the
trustee becomes a person with impaired capacity for
administering the trust.
102 Revocation by delegate
The delegation of a matter under section 95 is revoked if—
(a) the delegate resigns by written notice given to the
trustee; or
(b) the delegate becomes disqualified from being appointed
as a trustee by an order made under section 168; or
(c) for a delegate who is an individual, the delegate—
(i) dies; or
(ii) becomes a person with impaired capacity for
administering the trust; or
(iii) becomes an insolvent under administration; or
(d) for a delegate that is a trustee corporation, the
delegate—
(i) stops carrying on business; or
(ii) becomes a Chapter 5 body corporate; or
(iii) is deregistered or otherwise ceases to exist.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Page 78
Authorised by the Parliamentary Counsel
[s 103]
Trusts Bill 2025
Part 7 General powers of trustees
Subdivision 4 Protections for third parties
103 Definition for subdivision
In this subdivision—
delegate includes a former delegate.
104 Validity of particular acts of delegate in favour of third
party
(1) This section applies if—
(a) a delegate does an act, or signs an instrument, in favour
of another person in the exercise, or purported exercise,
of power under a delegation made under section 95; but
(b) the delegate lacks the power to do the act, or sign the
instrument, because the delegation of the matter, for any
reason, is not in operation.
(2) The act done or instrument signed by the delegate is, in favour
of the other person, as valid and effective as it would be if the
delegation of the matter had been in operation.
(3) Subsection (2) does not apply if, when the act was done or the
instrument was signed, the other person had actual notice that
the delegation of the matter was not in operation.
(4) For this section, the delegation of a matter is in operation at a
particular time only if, at that time—
(a) the delegation of the matter has commenced and is in
effect; and
Note—
See section 96 in relation to when the delegation of a matter
commences and is in effect.
(b) the stated circumstances apply.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Page 79
Authorised by the Parliamentary Counsel
[s 105]
Trusts Bill 2025
Part 7 General powers of trustees
105 Effect of statutory declaration by delegate
(1) This section applies if a delegate makes a statutory declaration
relating to a trust stating that—
(a) the delegation of a matter under section 95 has
commenced and has not been revoked or otherwise
ended, and the circumstances in which the delegation is
to operate apply; or
(b) in any transaction, the delegate is acting in the
administration of the trust.
(2) The statutory declaration is, in favour of a person dealing with
the delegate, conclusive evidence of the matter stated.
106 Persons dealing with delegate in good faith not affected
by notice of trust
(1) This section applies if, in any transaction, it appears from the
delegation of a matter under section 95, or from any evidence
required for the purpose of a delegation under that section or
otherwise, that the delegate is acting in the administration of a
trust.
(2) A person dealing in good faith with the delegate is not
affected by notice of the trust.
Division 5 Appointment of agents
107 Appointment of agent
(1) A trustee may, instead of acting personally, appoint an agent
to transact business, or do another thing, required to be done
in the administration of the trust.
(2) Without limiting subsection (1), a trustee may appoint an
agent to do 1 or more of the following—
(a) receive and pay amounts;
(b) give a receipt for property payable, transferable or
deliverable to the trustee;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Page 80
Authorised by the Parliamentary Counsel
[s 108]
Trusts Bill 2025
Part 7 General powers of trustees
(c) keep trust accounts.
(3) The persons who may be appointed as an agent under this
section include—
(a) an accountant; and
(b) a financial institution; and
(c) a financial services licensee, within the meaning of the
Corporations Act, section 9, whose Australian financial
services licence under that Act covers dealing in, or
providing advice about, securities; and
(d) a solicitor; and
(e) a trustee corporation.
(4) Also, a trustee may appoint a co-trustee as an agent.
(5) However, a trustee may not appoint a beneficiary of the trust
as an agent even if the beneficiary is also a co-trustee.
108 Payment of agent and reimbursement of trustee
If a trustee appoints an agent, the trustee—
(a) may pay the agent; and
(b) is entitled to be allowed and paid any charge or expense
that is reasonably and properly incurred because of the
agent’s appointment.
Division 6 Application of income by
trustee-mortgagee in possession
109 Definitions for division
In this division—
mortgage debt see section 110(1)(a).
primary beneficiary, in relation to a mortgage debt held on
trust for persons in succession, means the person entitled to
the interest of the mortgage debt.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Page 81
Authorised by the Parliamentary Counsel
[s 110]
Trusts Bill 2025
Part 7 General powers of trustees
priority outgoing, in relation to land the subject of a
mortgage, means any of the following—
(a) rents, taxes, rates and other outgoings affecting the land;
(b) premiums on insurance properly payable in respect of
the land;
(c) annual amounts or other payments and the interest on
principal amounts having priority to the mortgage.
110 Application of income—priority outgoings accruing after
trustee becomes mortgagee in possession
(1) This section applies if—
(a) a trustee is entitled, whether solely or as a
co-mortgagee, to a debt that is secured, wholly or partly,
by a mortgage of land (the mortgage debt); and
(b) the mortgage debt is held on trust for persons in
succession; and
(c) the trustee becomes mortgagee in possession of the land.
(2) The trustee must apply the income of the land received by the
trustee to pay the priority outgoings in relation to the land, but
only if, or to the extent, the priority outgoings accrue on or
after the day the trustee becomes mortgagee in possession.
(3) If a priority outgoing relates to a period partly before and
partly after the day the trustee becomes mortgagee in
possession, the priority outgoing is taken to accrue from day
to day and must be apportioned accordingly.
(4) Subject to the rights of the mortgagor, the trustee must hold
the balance of the income of the land received by the trustee
on the trusts to which the mortgage debt is subject.
111 Payment to primary beneficiary on recovery of all or part
of mortgage debt
(1) This section applies if—
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Page 82
Authorised by the Parliamentary Counsel
[s 112]
Trusts Bill 2025
Part 7 General powers of trustees
(a) all or part of the mortgage debt is recovered, whether by
repayment or on realisation of the security or otherwise;
and
(b) under section 110, the trustee has applied income of the
land received by the trustee to pay 1 or more priority
outgoings in relation to the land; and
(c) the income, or part of the income, applied by the trustee
would otherwise have been payable to the primary
beneficiary as interest of the mortgage debt.
(2) As between the beneficiaries for whom the mortgage debt is
held on trust—
(a) the income, or the part of the income, applied by the
trustee that would otherwise have been payable to the
primary beneficiary is taken to be arrears of interest on
the mortgage debt; and
(b) the amount recovered by the trustee must be apportioned
accordingly.
(3) However, the primary beneficiary is not entitled to be paid
interest on the amount taken to be arrears of interest under
subsection (2)(a).
112 Application of income—priority outgoings accruing
before trustee becomes mortgagee in possession
(1) This section applies in relation to a priority outgoing in
relation to the land if, or to the extent, the priority outgoing
accrued before the day the trustee became mortgagee in
possession of the land.
(2) If the trustee considers it necessary to do so in the
administration of the trust, the trustee may apply the income
of the land received by the trustee in payment of the priority
outgoing.
(3) However, the primary beneficiary is entitled to recoup out of
the capital of the mortgage debt any payment made by the
trustee under subsection (2).
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
Page 83
Authorised by the Parliamentary Counsel
[s 113]
Trusts Bill 2025
Part 7 General powers of trustees
(4) This section applies despite any other provision of this
division.
Division 7 Delivery of chattels
113 Delivery of chattels to beneficiary with life interest or
other limited interest
(1) This section applies if—
(a) under a trust, a beneficiary is entitled to a life interest, or
another limited interest, in any chattels; and
(b) the beneficiary asks the trustee to deliver the chattels to
the beneficiary.
(2) The trustee may deliver the chattels to the beneficiary on
being given a signed inventory for the chattels by the
beneficiary.
114 Delivery of chattels to child
(1) This section applies if, under a trust, a child is beneficially
entitled to any chattels.
(2) The trustee may deliver the chattels to the child or a guardian
of the child.
(3) The receipt of the child or the guardian is a complete
discharge to the trustee for the chattels delivered under
subsection (2).
(4) The power conferred under this section is in addition to the
power conferred under section 128 and, for section 128(4), the
value of the chattels is not to be taken into account in any way.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Page 84
Authorised by the Parliamentary Counsel
[s 115]
Trusts Bill 2025
Part 7 General powers of trustees
Division 8 Other provisions
115 Application of insurance money
(1) This section applies if—
(a) an insurance policy has been kept up against—
(i) the loss of, or damage to, trust property, whether
by fire or otherwise; or
(ii) any other risk or liability relating to trust property;
and
(b) the trustee receives an amount under the policy.
(2) For subsection (1), it does not matter whether the insurance
policy was kept up—
(a) under the trust or under any power, whether statutory or
otherwise; or
(b) in performance of any obligation, whether statutory or
otherwise.
(3) For the purposes of the trust, the amount received by the
trustee—
(a) is to be treated as income to the extent it is consistent
with the purpose for which the insurance policy was
taken out; or
(b) is to be treated as capital if, or to the extent, paragraph
(a) does not apply.
(4) The amount is to be held on trusts corresponding as nearly as
possible with the trusts affecting the property in relation to
which the amount was payable.
(5) Also, the trustee may apply the amount, or part of the amount,
in rebuilding, reinstating, replacing or repairing the property
that was lost or damaged.
(6) However, if the amount has been paid into court, subsection
(5) applies subject to any direction of the court.
(7) This section does not prejudice or affect—
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Page 85
Authorised by the Parliamentary Counsel
[s 116]
Trusts Bill 2025
Part 7 General powers of trustees
(a) the rights of a person to require the amount or part of the
amount to be applied in rebuilding, reinstating,
replacing or repairing the property that was lost or
damaged; or
(b) the rights of a mortgagee, lessor or lessee of the
property, whether under an Act or otherwise.
116 Deposit of documents for safe custody
(1) A trustee may deposit a document held by the trustee relating
to the trust, or to the trust property, with a relevant entity
whose business includes undertaking the safe custody of
documents.
(2) An amount payable for the deposit of the document is payable
out of—
(a) the income of the trust property; or
(b) if there is no income or to the extent the income is
insufficient—the capital of the trust property.
(3) In this section—
relevant entity means any of the following entities—
(a) a law practice within the meaning of the Legal
Profession Act 2007;
(b) a financial institution;
(c) a corporation.
117 Valuations
(1) A trustee may, for the purpose of giving effect to the trust or
the trust instrument or a provision of this Act or another Act,
ascertain and fix the value of—
(a) the trust property; or
(b) any property the trustee is authorised to buy or
otherwise acquire.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
Page 86
Authorised by the Parliamentary Counsel
[s 118]
Trusts Bill 2025
Part 7 General powers of trustees
(2) The trustee may ascertain and fix the value in any way the
trustee considers appropriate.
(3) If the trustee is not personally qualified to ascertain the value
of any property, the trustee—
(a) must consult a properly qualified person, whether
employed by the trustee or not, about the value of the
property; but
(b) is not bound to accept a valuation made by the person.
(4) The value fixed by the trustee under this section and in
accordance with the trustee’s duties under part 5, divisions 2
and 3 is binding on all persons beneficially interested in the
trust property.
118 Audit
(1) A trustee—
(a) may have the accounts of the trust property examined or
audited by an accountant; and
(b) must, for that purpose, give the accountant the
documents and information the accountant requires to
conduct the examination or audit.
(2) The costs of the examination or audit, including the
accountant’s fee, are payable out of the capital or income of
the trust property, or partly out of the capital and partly out of
the income, as the trustee considers appropriate.
(3) However, in the absence of any direction by the trustee to the
contrary in a special case—
(a) costs attributable to capital are payable out of the
capital; and
(b) costs attributable to income are payable out of the
income.
(4) Despite subsection (2), if the trustee or 1 of the trustees is a
trustee corporation, the costs of the examination or audit are
payable out of the trust property only if—
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
Page 87
Authorised by the Parliamentary Counsel
[s 119]
Trusts Bill 2025
Part 7 General powers of trustees
(a) the examination or audit relates to a business forming
part of the trust property; or
(b) the court approves of the costs being paid out of the
capital or income of the trust property.
119 Trustee may sue and be sued by themself in another
capacity
(1) A trustee, in that capacity, may sue and be sued by themself in
another capacity, including the trustee’s personal capacity.
(2) However, the trustee must obtain the directions of the court in
which the proceeding is taken about the way the differing
interests are to be represented.
120 Inquiries about beneficiaries
(1) A trustee may make the inquiries, by way of advertisement or
otherwise, that the trustee considers necessary to ascertain the
existence or whereabouts of a beneficiary of the trust.
(2) The costs, expenses and charges incurred by the trustee in
making the inquiries about the beneficiary are payable out of
the legacy, amount or distributive share to which the
beneficiary is entitled.
(3) Subsection (2) applies subject to an express contrary intention
in the trust instrument.
121 Exercise of trustee powers when particular beneficiaries
are absolutely entitled
(1) This section applies in relation to a trust other than a trust
created by a court order.
(2) A trustee may exercise the powers conferred under this part in
relation to the trust property even though—
(a) all the beneficiaries are absolutely entitled to the trust
property; and
(b) each beneficiary is an adult—
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30