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PPS Act commencement - is your business prepared?PPS Act commencement - is your business prepared?

Contact PPSA Team
Scott Mannix Ian Beattie Michael Johns

The Personal Property Securities Register commenced operation on 30 January 2012.

The PPS Act introduces a radical new regime for creating, recording, registering and enforcing security interests in Australia.  The PPS Act represents a complete departure from the existing regimes concerning security over personal property (ie property other than real estate).

The PPS Act will not just affect financiers and other lenders, but will also affect almost every business, in particular:  

  • businesses which obtain finance (click here for more information);
  • businesses that supply goods on credit, including under consignment or retention of title arrangements (click here for more information);
  • businesses that supply or obtain goods under lease or licence arrangements, including leases between related parties (click here for more information); and
  • anyone who acquires personal property (click here for more information).

The most significant aspects of the PPS Act are:

  • the introduction of an online, real time national register recording security interests in personal property (click here for more information on personal property, security interests and the register);
  • the application of the regime not only to corporations but also to individuals, partnerships, trusts, joint ventures and government departments and agencies;
  • the treatment of ownership interests in personal property, such as the interest of a lessor, a consignor or a retention of title supplier, as a mere security interest that must be registered to compete on an even footing with other security interests; and
  • the introduction of a new priority regime which requires the holder of a security interest to take specific steps to ensure that its security interest is enforceable against other interest holders (click here for more information).

You need to act now to assess and address the potential impact on your business.

If you would like further information, please click on any of the links above, or telephone your existing Maddocks contact or a member of our Personal Property Securities Team.