The Personal Property Securities Amendment (Deregulatory Measures) Act 2015 (Cth) (Deregulatory Measures Act) will soon come into effect as an amendment to the Personal Property Securities Act 2009 (Cth) (PPSA).
The Deregulatory Measures Act amends the definition of ‘PPS lease’ in section 13 of PPSA. This means that all leases and bailments that are for a term of 90 days or more, but less than one year, will no longer be a category of security interest. These types of leases or bailments are typical to serial numbered goods (such as motor vehicles, watercraft (boats, ships) and aircraft).
The Deregulatory Measures Act is not retrospective and does not affect leases or bailments entered into before the commencement date. This amendment will therefore reduce the compliance costs associated with registration.
In anticipation of the change, businesses should review (and if appropriate amend) their:
- conditions of hiring (in particular to ensure that the term of the hiring is specified); and
- PPS policies and practices, to ensure that they are not making unnecessary registrations following the commencement of the new rules; and
- ensure that if a registration is not made, the term of the hiring does not exceed 12 months.
Please speak with one of our experienced practitioners should you require our assistance in reviewing and amending your business’ current conditions of hiring and PPS policies.
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