



The Personal Property Securities Act (PPSA) brings in a new regime to oversee the protection of security interests in personal property through the Personal Property Securities Register (PPSR).
As the new system started on 30 January 2012, it is important you understand the changes to ensure you protect your property.
What does this mean to me?
If you have activities like:
- Lease or rent machinery, vehicles or equipment;
- Purchase or sell goods on consignment, credit or agreement;
- Borrow or lend money;
- Grow crops or raise livestock e.g. agistment; or
- Super fund renting collectibles like artwork
then you need to be aware of the changes to the way securities (or charges) are placed over those assets.
The PPSA applies to interests in all property except land, and applies to interests granted by all entities, both corporate and individuals.
How does the PPSA/PPSR work?
Rather than relying on having “title” to personal property, the PPSA refers to “security interests” in property to determine who has the right to those assets, particularly in the circumstances of liquidations and formal administrations.
A security interest is an interest that secures the rights of a party to payment or an obligation. A common example of this is a retention of title arrangement when goods are with the retailer, but the wholesaler retains the ownership of the goods.
Previously, the contract between the two parties would determine who had “title”, or ownership, of the goods at any point in time.
Under the new PPSR, “security” must be “perfected” by the true owner or holder of the title to be able to make claim to the asset.
To “perfect” your security, you must either have control or possession, or registration of your interest. Registration will of course be the best form of protection of your interests over your property.
Where there is more than one registered security, priority is determined by the order of registration, with the earlier registrations having priority over later registrations.
What should I do?
The best starting point is to review your business operations and work out if any assets that you own are in the possession of other parties.
Where this is the case, then a more detailed review should be conducted to determine which of these assets need to be registered.
If in any doubt, consult with your solicitor or accountant. You do not want to be caught out and learn a lesson the hard way!




