January 30th, 2019, will mark the 7 year anniversary of the Personal Property Securities Register (PPSR).
The PPSR is a single, Australian register where details of security interests in personal property (i.e. property that is not land or additions to land (i.e. real estate and buildings)) can be registered and searched.
According to the Infotrack website, (https://www.infotrack.com.au/) the 120,000 seven-year security interests which were registered when the PPSR was first established in 2012, are set to expire within the next few weeks. This means, that businesses need to check what items they have registered with the PPSR and extend their registrations before they naturally expire. If you re-register your items after expiry, you may find yourself ranking behind another secured party already on the register.
The PPSR is designed to protect businesses that sell on terms, such as retention of title or consignment, as well as those who hire, rent or lease out valuable goods, machinery, vehicles and equipment. Businesses should register their interest in goods they have yet to receive payment for, thereby reducing the risk of the item becoming unsecured and losing priority if the customer does not pay or becomes insolvent.
With the January 30th deadline looming, it is now more important than ever to check on your existing registrations and make sure they are extended, so that you don’t lose protection over your items. Once your registration expires, it cannot be extended or renewed and your ownership in the goods may no longer be legally recognised. It is therefore crucial that you correctly extend your registrations before they naturally expire, to protect your interest.
Businesses should regularly check the status of all PPSR registrations and extend or renew them as needed even though, some registrations are automatically transferred from other registers to the PPSR. Even, if you don’t think the upcoming deadline applies to you, we recommend that all of our clients double check the register prior to the deadline.