The Supreme Court of Queensland on Friday October 3rd handed down its decision in Catalyst Townsville SPY No 1 Pty Ltd v Presbyterian Church of Queensland (receivers and managers appointed) & related matters [2025] QSC 255.
Key points from Justice Bradley’s decision:
- The Presbyterian Church of Queensland (PCQ) validly dealt with property in line with its charitable purposes. The transactions with Catalyst to build and operate aged care facilities were not a breach of trust.
- Officeholders were required to act prudently, but this did not mean avoiding all risk. Commercial dealings inevitably involve risk.
- Catalyst did not act unconscionably. There was no undue influence or exploitation, and PCQ had access to professional advice.
- PCQ is liable for debts of more than $26 million to Catalyst, which may be enforced against property held for the Church’s charitable purposes.
- There is a distinction between denominational and church assets, but this will need to be proven with evidence for local situations.
Next Steps:
The parties were given 14 days from the date of judgment to file final orders for the judge to sign.
From that date, the parties will have 28 days to lodge an appeal. For the Receivers to appeal, they will require advice from Senior Counsel and Court approval. If there is an appeal, it is expected there will be a stay of execution, meaning Catalyst will be unable to enforce payment of the judgment debt, pending the outcome of any appeal.
It is not expected that any active congregational properties will need to be sold during any appeal period, which we anticipate would be up to 9-12 months.
In the event court orders are sought by any party seeking to pursue the property of any active congregation, the Legal Facilitation Group will do all it can to facilitate the provision of independent legal advice and representation to protect church property of participating congregations in accordance with our mission.
A Letter from the Moderator of the Presbyterian Church of Queensland:
9 October 2025
To the Elders and Congregations of the Presbyterian Church of Queensland,
I am writing to you in light of the Judgement handed down last Friday by the Supreme Court and the recent media coverage about The Presbyterian Church of Queensland (PCQ) financial situation, including an article published in The Courier Mail and other news outlets. Together with the Presbyterian Church of Queensland’s legal advisers, the Church is reviewing the judgement closely, with a view to considering the Church’s options regarding any appeal of the judgment. The Assembly and its committees are yet to make a decision on that, and we will inform you of the Church’s decision once it is known.
In the meantime, notwithstanding Friday’s judgement, the Receivers to PCQ assure us that they will continue to preserve and maintain PCQ’s assets and operations in line with the terms of the Court Order governing their appointment as Receivers. Therefore, PCQ’s operations will continue on a business-as-usual basis.
In short, it is premature to be speculating on the consequences of Friday’s judgement for PCQ’s assets. It is my understanding that a helpful summary of the findings of the case that’s been compiled by the PCQ’s Solicitors will be posted in the near future on their web site: https://www.ntlawyers.com.au/category/news/
My prayer is that we would be reminded and encouraged by the words the Apostle Paul wrote to the Corinthian church in 2 Corinthians 4:7-12 because our treasure is not our easily broken mortal bodies nor our temporal organisations and possessions, but our treasure is Christ Jesus the Lord of heaven and earth who by the Holy Spirit dwells in us:
But we have this treasure in jars of clay, to show that the surpassing power belongs to God and not to us. We are afflicted in every way, but not crushed; perplexed, but not driven to despair; persecuted, but not forsaken; struck down, but not destroyed; always carrying in the body the death of Jesus, so that the life of Jesus also may be manifested in our bodies. For we who live are always being given over to death for Jesus’ sake, so that the life of Jesus also may be manifested in our mortal flesh.
We must decrease and Jesus increase.
And again, in 2 Corinthians 5:17-20, only one chapter on from the above passage, the Apostle Paul makes a further appeal to us regarding the Gospel:
Therefore, if anyone is in Christ, he is a new creation. The old has passed away; behold, the new has come. All this is from God, who through Christ reconciled us to himself and gave us the ministry of reconciliation; that is, in Christ God was reconciling the world to himself, not counting their trespasses against them, and entrusting to us the message of reconciliation. Therefore, we are ambassadors for Christ, God making his appeal through us.
Be assured and encouraged the Lord will build His church and our calling and mission is undeterred; God continues to make his appeal to the lost through The Presbyterian Church of Queensland.
We urge you to continue to pray about this matter and we will endeavour to keep you updated as things progress.
Peter Eckersley
Moderator-Elect