Personal Property Securities Register transition period reaches halfway mark

The Personal Property Securities Register, or PPSR, has reached its first anniversary, marking the halfway point of the two-year transition period. The transitional provisions provide a two-year period of temporary perfection, putting the onus on holders of transitional interests to comply with the Personal Property Securities Act 2009 (PPSA) after this point.

The PPSA serves to create a national scheme for security interests over personal property, and affects almost every area of business, making it one of the most significant legislative reforms in recent times for the Australian financial sector. Most businesses that supply goods (either by sale or lease) or finance are affected. 

The anniversary comes as a reminder for those responsible for transitional security interests which have not yet been registered to take action before it is too late. Businesses that fail to register security interests on the PPS Register risk suffering significant losses. However, businesses that make the required adjustments will enjoy new protections previously not available.

Statistics for the October-December 2012 quarter reveal over 1.5 million PPSR searches conducted, with over 7.1 million registrations recorded on the PPSR at the end of 2012. The largest category of registrations was motor vehicles, followed by all present and after acquired property. 

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