The Personal Property Securities Amendments (Deregulatory Measures) Bill 2014, is aimed at leases of serial numbered goods of a term between 90 days and one year. The Bill gained royal ascent on 25 June 2015 and came into effect on 1 October 2015, marking a change for the requirement to register certain leases and bailments on the Personal Property Securities Register (PPSR).
Previously, in order to protect your serial numbered goods under the Personal Property Securities Act 2009, a bailor, lessor or owner must have registered the goods if they were leased or bailed for a greater period of 90 days.
Under the new changes, any agreements entered into from 1 October 2015 means that the timeframe applicable has now been extended from 90 days to a period of 1 year. This change means that the lease or bailment is not required to be registered if it is for a period of less than one year, bringing the treatment of serial numbered goods in line with all other PPSR leases of non serial numbered personal property.
Lessors, owners or bailors should register their PPS registration when:
- It is intended that the lease is for greater than one year; or
- In practice you believe that it may extend greater than one year; or
- It has no definite term.
It is important to remember that failure to register the PPS lease on time or even incorrectly, can result in you losing the goods in the event that the lessee or bailee enters into insolvency.
Shaw Gidley are experts in restructuring, turnaround and insolvency and provide free initial advice on these matters. Please contact our offices on (02) 4908 4444 or (02) 6580 0400.