PPSA commencement

19 January 2012

Business Services partner Andrew Nicholson advises that the Personal Property Securities Act 2009 (Cth) (PPSA) will commence on 30 January 2012. The new regime represents a fundamental change in securities law. 

The PPSA establishes a single national law and a single online register for all 'security interests' in personal property. A security interest is broadly defined as any interest in property securing the payment of money or performance of an obligation. Personal property includes all tangible and intangible property, for example, plant and equipment, inventory, motor vehicles, trademarks and patents, book debts, and receivables. Exclusions include land, fixtures to land and some statutory licences. 

Businesses affected by the PPSA, that is, any business that sells goods on a 'retention of title' basis or hires out goods, should be finalising arrangements to be ready to implement the necessary changes to their documentation and procedures to deal with the commencement of the PPSA on 30 January. On this date, the Australian Register of Company Charges will be closed and all company charges (or security interests as they will be known) must be lodged with the PPS Register which will be administered by the Insolvency and Trustee Service Australia (ITSA). The PPS Register will be an online service and accessible to search and register security interests 24 hours a day, seven days a week. 

ASIC's final day for accepting and processing charge documents will be Friday 27 January 2012. Businesses are encouraged lodge documents early in the final week to ensure that the lodgements are processed by ASIC. Documents that are not registered with ASIC by the close of business on 27 January 2012 will need to be registered with ITSA. 

For more information, please contact: 

Andrew Nicholson | Partner
Mullins Lawyers
t +61 7 3224 0261 
f +61 7 3224 0333 
anicholson@mullinslaw.com.au