Personal Property Securities Act (PPSA)
In 2009 new legislation called the Personal Property Securities Act (PPSA) was passed with the intent to create one single, Australia-wide, register of security interests in respect of personal property. The PPSA came into force on 30 January 2012.
The types of security interests which may be registered under the legislation, and the definition of personal property, are significantly broader than under any previous regulations and cover almost all forms of tangible and intangible property. As a result, many commentators have likened the impact of the PPSA to the introduction of the GST in 2000 and businesses operating across all industries – but particularly in the manufacturing, wholesale and retail sectors - are affected by these sweeping changes.
Businesses need to understand the potential risks raised by the new legislation, and the impact on their business. Whilst a "grace period" is expected following the introduction of the legislation in 2012, which will allow businesses time to register their security interests, we would strongly recommend working with a legal professional to ensure your business is fully compliant and your interests are adequately protected.
Coleman Greig Lawyers has developed particular expertise on the PPSA. Since the legislation was passed in 2009 we have conducted regular briefings on the topic to ensure clients understand their obligations, and we have worked closely with individual clients from a broad range of industries to ensure their compliance.
We can help you with:
- Undertaking an audit of any security interests held by your business
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Reviewing and updating commercial documentation (including sales agreements, distribution agreements, contracts and terms of trade) in light of the PPSA
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Developing internal procedures to manage registration and the ongoing maintenance of security interests on the PPS Register
- Training key staff in the workings of the PPSA and Register
For more information on Changes to the ASIC Register of Company Charges, click here.