The Personal Property Securities Act 2009 (Cth) (PPSA), which commenced on 30 January 2012, changed the way security interests are dealt with across Australia by establishing a single national law governing most security interests in personal property. It replaced a large number of existing Commonwealth, State and Territory laws (including over 195 Acts and Regulations and 70 registers) which dealt with the registration of security interests over personal property in Australia.
The legislation led to the creation of a single national online Personal Properties Securities Register (PPSR), in which any holder of a security interest in a personal property must register to ensure they have a priority claim to that property. Legal title is no longer enough, as this legislation overturns fundamental personal property law concepts.
Buyers can check the PPSR to see if the valuable second-hand goods they want to buy are debt-free and safe from repossession. This includes goods such as machinery, equipment, vehicles and stock. Doing a search to check before you buy is low cost, easy and immediate.
Businesses selling on terms, such as retention of title, or leasing out valuable goods should consider registering their interest on the PPSR. Registering an interest in goods that a business hasn’t yet received payment for can help it recover the debt should a customer not pay or become insolvent.
Introducing the PPSA