ARTICLE
14 March 2012

SMSFs and the traps in the PPSA regime

CG
Cooper Grace Ward

Contributor

Established in 1980, Cooper Grace Ward is a leading independent law firm in Brisbane with over 20 partners and 200 team members. They offer a wide range of commercial legal services with a focus on corporate, commercial, property, litigation, insurance, tax, and family law. Their specialized team works across various industries, providing exceptional client service and fostering a strong team culture.
Owners of personal property and collectables in the possession of others must register their interests on the PPSR.
Australia Finance and Banking

The new Personal Property Security Act (PPSA) started on 30 January 2012.

This regime alters some of our established concepts of ownership. Owners of personal property like plant and equipment, motor vehicles, stock, artwork and collectables in the possession of others must now generally register their interest on the Personal Property Security Register (PPSR) or risk losing their title.

Three areas where this has a potentially serious impact, particularly for trustees of SMSFs, are where the trustees:

  1. lease personal property to another;
  2. place goods with another on consignment for sale; and
  3. have goods in storage.

While all entities with those arrangements need to be aware of the new registration requirements, trustees of SMSFs must also consider the compliance consequences of failing to register, particularly where the other party to the arrangement is a related entity.

This could result in the trustees not just losing the asset, but also facing a tax bill due to the non-compliance.

Click here for more information on PPSA.

Winner - EOWA Employer of Choice for Women Citation 2009, 2010 and 2011
Winner - Australasian Law Awards Gold Employer of Choice 2011
Finalist - ALB Australasian Law Awards 2008, 2010 and 2011 (Best Brisbane Firm)
Winner - BRW Client Choice Awards 2009 and 2010 - Best Australian Law Firm (revenue less than $50m)

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.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More