QLD Pharmacy Ownership: Can Trusts Still Hold Shares?

20 Oct QLD Pharmacy Ownership: Can Trusts Still Hold Shares?

Posted at Oct 20, 2025 3:30:12 PM in articles by yield advisory

The Queensland Government has introduced the most significant changes to pharmacy ownership rules in over 20 years.

 

Following the introduction of the Pharmacy Business Ownership Act 2024 (Qld) and the recent passing of the Health Legislation Amendment Bill (No. 2) 2025 in September, pharmacy owners across the state are being asked to review, reassess, and, in many cases, restructure how they own and operate their businesses.

 

And with those changes has come one of the most common, and urgent, question:
Can a trust still own shares in a pharmacy business under the new rules?

 

Here’s what you need to know.

 

Why the laws changed

The new legislation replaces the outdated 2001 Pharmacy Act, modernising how ownership and control of pharmacy businesses are regulated in Queensland.

The reforms are designed to:

  • Ensure that only practising pharmacists, or their close adult relatives, can legally own or financially benefit from pharmacy businesses.
  • Prevent external investors or corporations from indirectly influencing or controlling pharmacies via complex structures.
  • Establish a new Queensland Pharmacy Business Ownership Council, which will regulate and enforce the ownership and licensing regime.

This Council will have powers to assess, monitor, and investigate pharmacy business structures, including the use of trusts, companies, and layered ownership arrangements.

The new rules and licensing framework come into full effect on 1 November 2025.

 

What's changed for trusts

Trusts have long been used by pharmacy owners for tax planning, asset protection, and succession. But under the new laws, the use of trusts is now tightly restricted.

Previously, there was grey area around whether a trust could legally hold shares in a pharmacy company, or if a trustee could hold them “on trust” for another party.

The new legislation has removed the ambiguity.

A trust can hold shares in a pharmacy business only if:

  • All beneficial interests in the trust belong to eligible persons — that is, practising pharmacists or their close adult relatives.
  • No non-pharmacist (including unrelated individuals, companies, or children) can benefit from the trust in any way, directly or indirectly.

 If a trust includes even one non-eligible beneficiary (e.g. a company, minor, or extended family member), the structure will breach the new rules.

These rules apply regardless of how likely it is that a non-pharmacist will receive a distribution - if they’re listed in the trust deed, it's a risk.

How the new rules work in practice

To make it easier to understand, here are some common trust structures — and whether they’re compliant under the new regime:

 

Structure Type

Compliance Status

Explanation

Unit trust where all units are held by practising pharmacists

Compliant

All beneficial interests are held by eligible persons.

Family trust with pharmacist and spouse as beneficiaries

Compliant

Allowed, provided no other potential beneficiaries are listed in the deed.

Discretionary trust that includes a company, minor, or unrelated beneficiary

Non-Compliant

Any non-eligible beneficiary breaches the new rules.

Corporate trustee partly owned by a non-pharmacist

Non-Compliant

Trustee must be 100% owned and controlled by eligible persons.

Trust for a pharmacist, but controlled by others

Potential Risk

Could breach rules depending on who truly controls or benefits from the trust.

 

A trust can only be used if it is 100% owned, controlled, and beneficially held by eligible persons.

This includes both the legal structure and the economic benefit — regulators will look through the layers.



What pharmacists and business owners should do now

The new framework introduces annual licensing, mandatory disclosures, and audit powers. Every pharmacy business will be subject to ongoing compliance checks, and any non-compliant arrangement could result in licence refusal or cancellation.

If your pharmacy is held in a trust or involves layered ownership, now is the time to act.

To prepare, owners should:

  1. Review all trust structures
    Identify every trust or company that holds a direct or indirect interest in your pharmacy.
  2. Check beneficiaries and trust deeds
    Remove or amend any ineligible beneficiaries (e.g. companies, children, unrelated parties).
  3. Confirm trustee eligibility
    Ensure the trustee, whether an individual or company, is 100% controlled by pharmacists or close adult relatives.
  4. Seek professional advice
    Trust restructuring can trigger capital gains tax, stamp duty, and income tax implications, advice is essential.
  5. Prepare for licensing and disclosure
    Keep records up to date: trust deeds, share registers, beneficiary lists, and ownership documents may be requested by the regulator.

Note: Transitional relief (including duty exemptions for eligible restructures) is currently available but time limited.

 

Final thoughts

With the new pharmacy ownership rules taking effect from 1 November 2025, now is the time for pharmacy owners to act. Reviewing your current structure, identifying any compliance risks, and making necessary adjustments early will help ensure a smooth transition. Seeking professional advice will be key to navigating these changes with confidence.