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On 11 May 2017, the Australian Parliament passed the Personal Property Securities Amendment (PPS Leases) Bill 2017 which makes changes to the definition of a “PPS Lease” under the Personal Property Securities Act 2009 (PPSA). The changes came into effect on 20 May 2017 and only apply to leases or bailments that are entered on or after 20 May 2017.
Under the old definition, the definition of a PPS Lease included certain leases and bailments of goods for an indefinite period or for a period of more than one year. This meant that leases or bailments that were for an indefinite period or for a period of more than one year were considered PPS Leases. The interests of the lessors and bailors under these PPS Leases were deemed to be security interests capable of registration on the Personal Property Securities Register (PPSR).
Under the new definition, leases or bailments entered into on or after 20 May 2017 will not need to be registered on the PPSR unless it is for a fixed period of more than two years. Leases or bailments for an indefinite term will no longer automatically fall within the definition of a PPS Lease and will not need to be registered on the PPSR unless and until it runs for more than two years.
As noted above, the changes do not operate retrospectively and do not effect any current PPS leases or bailments that were entered into prior to these changes. This means that all leases and bailments entered into before 20 May 2017 that have either an indefinite term or a term of more than one year must still be registered on the PPSR.
If you hire, rent or lease out goods these changes may affect you. The changes have been introduced to benefit those lessors and bailors that operate on short term or indefinite term leases that are unlikely to exceed a period of two years. If however, it is highly likely that the term will exceed two years lessors and bailors should still register their interest on the PPSR.
Should you have any questions or require further information about these changes our experienced team of PPSR specialists would be more than happy to discuss or assist you with your enquiries.
About the author
Danielle Clarke
Senior Associate
LLB
Danielle was born and raised in Mackay and completed her secondary schooling in Mackay before undertaking a law degree at James Cook University in Townsville. Danielle has been employed with Macrossan and Amiet since the commencement of her Traineeship in 2010 and was admitted as a Solicitor to the Supreme Court of Queensland in 2012.
Danielle advises on a range of property transactions including property development, commercial and residential leasing, acquisitions and disposals. Her interest for the property industry and market enables her to deliver quality legal and commercial advice.
Outside of Macrossan and Amiet, Danielle enjoys spending time at home with her husband, two young children and two maltese shih tzu’s.
Danielle is available by appointment in Brisbane.
About Macrossan & Amiet Solicitors
For over 100 years, Macrossan & Amiet Solicitors has been a leading local law firm in Mackay, with offices in Proserpine and Cannonvale servicing the Whitsundays region. Our experienced solicitors provide professional legal services to individuals, families and businesses across regional Queensland.
Whether you need representation in court, assistance buying or selling property, or advice on protecting your assets, our Mackay lawyers are committed to achieving the best possible outcome for you.
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