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The new legislation replaces the outdated 2001 Pharmacy Act, modernising how ownership and control of pharmacy businesses are regulated in Queensland.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:
- Review all trust structures – Identify every trust or company that holds a direct or indirect interest in your pharmacy.
- Check beneficiaries and trust deeds – Remove or amend any ineligible beneficiaries (e.g. companies, children, unrelated parties).
- Confirm trustee eligibility – Ensure the trustee, whether an individual or company, is 100% controlled by pharmacists or close adult relatives.
- Seek professional advice – Trust restructuring can trigger capital gains tax, stamp duty, and income tax implications, advice is essential.
- 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.
Lachlan Ballinger is the Managing Director of Yield Advisory, a specialist accounting and business advisory firm focused on the pharmacy industry. You can reach Lachlan at lballinger@yieldadvisory.com.au.