The Personal Property Securities Act 2009 (PPS Act) requires security interests to be registered on the Personal Property Securities Register (PPSR). Such security interests can include goods that have been sold pursuant to credit terms such as retention of title, or valuable goods that have been leased.
Under the PPS Act, a person who supplies goods (on the basis that the supplier retains ownership until paid) or leases goods to a customer can be treated as having a security interest in the goods. Failing to register this security interest on the PPSR can mean these goods will be lost to their customers’ creditors even though the owner of the goods has not changed.
A transitional period allowed for security interests which were established under agreements made prior to 30 January 2012 will cease on 31 January 2014.
So, if you do have a security interest that has not yet been registered, go to www.ppsr.gov.au and follow the steps to make sure you protect your interest.
Why the PPSR is important if you are purchasing goods
If you are purchasing goods such as vehicles, machinery, stock or other significant items, you should check on the PPSR whether the goods are subject to security interests – it’s similar to the old REVS check that you would have conducted before purchasing a vehicle.
It is easy to check the PPSR – go to www.ppsr.gov.au and click on the links to the search area. You can search by the vehicle’s VIN, the boat’s serial number, or the owner’s name. There is a small fee payable for each search.