Amendment to Personal Properties Securities Act (PPSA)
From 1 October 2015 the requirement to register leases and bailments of serial numbered goods for a term of between 90 days and one year will no longer apply.
This means that registration on the Personal Property Securities Register (PPSR) is only required for leases and bailments where: –
- the commencement date of the lease or bailment is after 1 October 2015; and
- the term of the lease or bailment is either one year or more or the term is indefinite.
Change does not apply retrospectively
This change does not apply retrospectively so it is still imperative, for leases and bailments of serial numbered goods with a commencement date prior to 1 October 2015 for a period of 90 days or more, that lessor’s or bailor’s continue to register their interest on the PPSR.
Serial numbered goods include aircrafts, motor vehicles, watercrafts and certain intangible property.
Written Terms of Trade or Lease Agreement
It is imperative that lessor’s and bailor’s have written terms of trade or lease/bailment agreements in place to use as evidence (should it be necessary) that the lease/bailment agreement falls within the amendments to the PPSA and as such is not required to be registered on the PPSR.
Without a written agreement, specifying the term of the arrangement, it will be difficult for a lessor or bailor to successfully argue that the requirement to register their interest on the PPSA does not apply.
How we can help
If you would like further information on the changes to the PPSA or would like us to review your terms of trade or hire agreements, please contact us.
