The pharmacy ownership shake-up in Australia’s Sunshine State

The Pharmacy Business Ownership Act 2024 (Qld) commenced in full on November 1 2025, replacing the Pharmacy Business Ownership Act 2001 (Qld) and introducing the most significant changes to pharmacy ownership regulation in Queensland in decades.

For pharmacists who own and operate a pharmacy personally, the practical impact of the new regime may be limited, although they will still need to apply for a pharmacy business licence.

However, for pharmacy businesses that use corporate or trust structures, the new rules warrant close attention well before the deadline for applying for a licence.

What has changed?

The new Act introduces the concept of a ‘material interest’ in a pharmacy business. Broadly, a person will hold a material interest if they:

• are a shareholder in a company that owns a pharmacy business
• are a beneficiary of a trust that owns a pharmacy business, or
• otherwise hold an interest in a pharmacy business that entitles them to receive consideration that varies according to the profits or takings of the business.

The Act clarifies and more directly regulates who may hold these interests.

In general terms, a material interest may only be held by a practising pharmacist or a close adult relative of a practising pharmacist, provided the pharmacist also holds an interest in the pharmacy business.

This means that close adult relatives may (within certain structures) participate in the ownership structure, but only alongside a pharmacist who also holds an interest in the business.

The changes are intended to clarify that ownership and economic interests in pharmacy businesses remain closely linked to practising pharmacists.

As a result, some structures which have historically been common in pharmacy ownership, such as discretionary trusts with broad classes of beneficiaries and arrangements involving corporate shareholders or corporate beneficiaries, may no longer comply with the new legislation.

Why this matters

Many pharmacy ownership structures were established years ago for tax planning, succession planning or asset protection purposes, rather than with the requirements of the new regulatory regime in mind.

Existing owners should not assume a structure that was valid under the former legislation will continue to comply under the new Act.

Most existing pharmacy business owners must apply for a pharmacy business licence by November 2 2026. This includes owners with non‑compliant discretionary trust beneficiaries, although those owners may have until November 1 2027 to amend their trust deed if a licence application is lodged in time.

A separate transitional arrangement applies to a limited category of ‘deemed eligible’ corporate ownership structures, which may have until November 1 2027 to apply for a licence.

Pharmacy owners should therefore review their trust deeds, constitutions and ownership structures now to determine whether they include beneficiaries, shareholders or other material interest holders who are not permitted to hold a material interest in a pharmacy business under the new Act.

Where a trust deed includes beneficiaries who are not permitted to hold a material interest, or a structure includes corporate shareholders or corporate beneficiaries, amendments or restructuring may be required.

A different approach

Interestingly, while Queensland has moved to tighten ownership requirements, New Zealand appears to be moving in a different direction.

Historically, like Australia, New Zealand has maintained ownership restrictions requiring registered pharmacists to hold majority ownership and exercise effective control of most pharmacy businesses.

However, the New Zealand Government has announced its intention to remove the majority pharmacist ownership requirement through the proposed Medical Products Bill.

Accordingly, while Queensland is narrowing the range of persons who may hold interests in pharmacy businesses and reducing the scope for corporate ownership structures, New Zealand is considering a more liberal ownership model.

The contrasting approaches highlight that pharmacy ownership reform remains an evolving policy area on both sides of the Tasman.

Key practical steps

For Queensland pharmacy owners operating through trusts or companies, the key practical steps are to:

• Identify all shareholders, beneficiaries and other persons who may hold a material interest in the pharmacy business
• Assess whether each material interest holder satisfies the requirements of the new Act
• Determine whether the ordinary transitional provisions or the deemed‑eligible corporate provisions apply to the ownership structure
• Review trust deeds and constitutions to identify non compliant beneficiaries, corporate beneficiaries, corporate shareholders and any provisions that permit interests to be held by persons who would not be entitled to hold a material interest under the Act
• Obtain legal advice where corporate shareholders, corporate beneficiaries or trusts are involved
• Ensure all relevant licence application and rectification deadlines are diarised well in advance.

The new regime provides transitional relief in some circumstances, but that relief is conditional and time limited. For many pharmacy owners, the most important step is to ensure their ownership structure is reviewed well before the relevant deadline arrives.