PPSA will affect not just financiers. It will have an impact on
a wide range of businesses.
Start date delayed
The proposed 31 October 2011 start date has been delayed.
On 2 September 2011 the Commonwealth Attorney General's
department sent out a notification by email that the registration
commencement time of the Personal Property Securities Act
2009 (PPSA) on 31 October 2011 is not
According to the notification, it is now targeting a date
"before 1 February 2012". No specific start date has been
When is the latest date that the PPSA can start?
The latest start date that can occur under the current PPSA is 1
Under section 360 of the PPSA, the registration commencement
time is the start of the first day of the month that is 26 months
in which the PPSA was given Royal Assent or an earlier time
determined by the Minister. The PPSA received Royal Assent on 10
December 2009 which will make the latest start time 1 February
It had originally been expected that the Australian government
and industry would be ready for PPSA well before 1 February 2012
and that the Minister would make a determination of an earlier
date. Indeed the first target date was May 2011. However, there
were a number of system related issues that caused the current
Practical issues with 1 February start date
The Attorney General's department recognises that there will
also be practical issues with a 1 February 2012 registration
commencement time, bearing in mind holiday periods. At its Business
Process and IT User Forum meeting on Friday (2 September 2012) it
indicated that the user acceptance testing and end to end testing
for data migration must be finalised to an acceptable level before
commencement is feasible.
Can the latest start date be extended beyond 1 February
The latest start date on 1 February 2012 cannot be extended
beyond 1 February 2012 unless the PPSA is amended.
As the introduction of the national personal property
registration system was a Council of Australian Governments'
initiative, the Commonwealth, State and Territory governments must
first agree to a change of date. According to the Personal Property
Securities Law Agreement signed on 2 October 2008 any alteration to
the PPSA requires the Commonwealth to consult with the State and
Territory parties and any proposals for amendment must be notified
to the other parties to ensure they have the opportunity to comment
on the proposed amendments. This would include any extension of the
start date beyond 1 February 2012.
Once the parties have consulted under the relevant agreement,
Commonwealth Parliament must pass amending legislation to the PPSA.
However there are relatively few sitting days of the Commonwealth
Parliament left before the end of 2011.
Effect of a later start date
We have been working hard on amending and redrafting client
documents during the course of this year to ensure that documents
are "PPSA compliant" by the registration commencement
There are still a number of issues that need to be resolved. We
expect that the additional time will enable further representations
to be made to the Attorney General's department to address
We are also aware that a large number of smaller businesses do
not understand the impact of the PPSA on business. For businesses
that have not yet had the opportunity to fully understand and
prepare for the PPSA, the delay is a welcome development.
PPSA applies to a wide range of businesses
If you would like to discuss the PPSA and possible implications
for your business please contact one of our PPS team.
Further updates to follow
We will issue further updates once the precise timetable is
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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