Queensland Treasury has issued a ruling on foreign trusts:
Public Ruling LTA000.3.1 Foreign corporations and foreign trusts—interests of foreign persons and related persons - see here: https://www.treasury.qld.gov.au/resource/lta000-3/
In terms of a discretionary trust being a Foreign Trust the Commissioner notes:
- A discretionary trust will not necessarily be a foreign trust merely because one of its default beneficiaries is a foreign person.
- Whether a discretionary trust with a foreign person as a default beneficiary is a foreign trust will depend on the facts and circumstances of each matter. The Commissioner will consider the likelihood of distribution to a foreign person, taking into account the terms of the trust deed concerning any priority or proportion for sharing between default beneficiaries.
The LightYear Docs non-foreign persons trust deed excludes ALL foreign beneficiaries. You can use the link here to upgrade a current discretionary trust: