PPSA explained


PPSA explained

Here’s a quick snapshot of the Personal Property Securities Act. Contact us for advice about how it impacts your business. 

What is the PPSR?

There were once over 40 state and territory registers in Australia used by different industries to register security interests in personal property. Now there is one single national register – The Personal Property Securities Register (PPSR).

The PPSR is a national online database that shows all registered security interests that businesses have in their personal property. Personal property includes goods, crops, livestock, debtors, cash, vehicles, plant and machinery.


What is the PPS Act?

You may see the Personal Property Securities Act 2009 (PPSA) referred to as the PPS Act. The PPS Act is designed to give businesses better protection against customers who become insolvent. Unfortunately, it’s complicated to understand, and not all businesses know how to comply.

The PPSA affects any business that hires, leases or rents goods without being paid first. So, if you’re a trade creditor, a financial institution or you hire equipment, it’s important to understand the impact that this legislation may have on your business.  


How the PPSA benefits you

The Personal Property Securities Act protects against the loss of equipment or goods when a customer goes bust. There’s no reason to accept bad debt as an inevitable part of doing business.

The Personal Property Securities Act gives you the opportunity to become a secured creditor and have a seat at the negotiating table with the insolvency practitioner. You have legal rights and the ability to recover your goods and assets – a compelling benefit that can save you millions of dollars.  


How the PPSA works

You supply property to a customer. The property might be equipment you’ve hired to the customer. Or it might be goods you’ve sold with the agreement that you retain legal ownership of them until the customer has paid you (Retention of title agreement).

The customer becomes insolvent. Under PPSA legislation, the equipment you’ve hired or the goods you’ve sold on credit will belong to your customer. That’s right – your customer! Retention of Title  no longer protects your goods and assets.

Only by complying with the PPSA can you turn this around. If your security interests are perfected under the PPSA, you become a secured creditor and get paid first before the banks and liquidator.

How to comply? Register correctly, and on time, with the PPSR.

Go to the Australian Federal Government website for a copy of the PPSA legislation. To find out more about PPSA, refer to our Frequently Asked Questions or contact our team of PPSR experts to explain what these complex rules mean for your business.