Focus: Bill introduced to federal parliament
may mean further delays for PPSA commencement Services: Commercial, Financial Services,
Intellectual Property & Technology, Insurance, Property &
Projects Industry Focus: Energy, Resources &
Infrastructure, Financial Services, Insurance, Medical &
The Commonwealth Government on Tuesday introduced a
bill into the federal parliament to amend the Personal Property
Securities Act 2009 (Cth) to provide the Attorney General the
flexibility to delay the commencement date of the PPSA (currently
30 January 2012).
The PPSA currently has a built in "drop dead"
commencement date of 1 February 2012. Whilst the Attorney
General already had the power under the PPSA to bring that date
forward, he is not able to make a determination to move that
The commencement of the PPSA has previously been
delayed a number of times, from an initial expected date
of May 2011 to early October 2011, to 31 October
2011 to the currently envisaged commencement date. Whilst the
government has indicated that it is committed to getting to the
commencement date as soon as possible, it appears to be mindful of
the need to ensure that the electronic register - the centrepiece
of the PPS reforms - has full functionality once introduced, so
that parties can transact with a high degree of certainty.
As we continue on the road to PPSA commencement, we should bear
in mind that there may soon be scope for the commencement date to
again be moved backwards by the Attorney General. It seems
that any such movement will ultimately depend on the
finalisation of testing of the electronic register over the next
month or so, and an assessment of its potential stability at
the intended "go live" time.
Whilst this may be welcome news to SME's who are only
beginning to comprehend the impact of this important reform on
their day to day operations, there may be frustration on the part
of some larger market participants who are reaching the peak of
their preparations and training for PPSA well in advance of the
For more information, please contact a member of the
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