In a recent development, the commencement date of the Personal
Property Securities Act 2009 (Cth) (PPSA) has been delayed from May
2011 to October 2011. The deferral of the commencement date is the
result of industry requests for more time to prepare.
Establishment of a securities register
The PPSA is new legislation which will extensively change the
way in which security interests in personal property are dealt with
across Australia. The legislation will lead to the creation of an
Personal Property Securities Register in which any holder of a
security interest must register their interest to ensure they have
a priority claim to it.
What is covered by the PPSA
Personal property covered by the PPSA is any form of property
other than water rights, land and buildings or fixtures which form
a part of the land. It includes tangible and intangible property
such as motor vehicles, equipment, business and retail stock, crops
and livestock, intellectual property, licenses, household items and
financial instruments such as shares.
What will change under the PPSA
Some of the changes that will occur under the PPSA are that:
Financiers will be required to modify security documents and
procedures in relation to charges, mortgages over all property
(other than land), vehicle and equipment leases and hire purchase
The company charge registration system under the
Corporations Act will be replaced and the concepts of a
floating charge and crystallisation will be redundant
State and territory registration systems for motor vehicle and
boat encumbrances and for bills of sale will be replaced
Security interests which have been given by individuals and
which could not be formally registered in the past will now be
registrable and will be subject to a statutory priority and
Rights of manufacturers and suppliers in respect of
consignments and retention of title arrangements will constitute
security interests that will need to be registered to minimise the
risk of being defeated
The PPSA will have a significant impact for all Australian
businesses and individuals that hold security interests in personal
property. It will be necessary to prepare for the new regime well
Please do not hesitate to contact Tean Kerr or Georgina King if
you have any questions or would like advice on the PPSA and how
best to prepare for it.
Swaab Attorneys was the highest ranking law firm and the
13th best place to work in Australia in the 2010 Business Review
Weekly Best Places to Work Awards. The firm was a finalist in the
2010 BRW Client Choice Awards for client service and was named the
winner in the 2009 Australasian Legal Business Employer of Choice
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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