As this financial year draws to a close, you may be facing the biggest change in recent years to your business practices in the new financial year.
The Personal Property Securities ("PPS") regime establishes a national registration regime for security interests in personal property. Amongst other impacts, businesses which ordinarily rely on ‘retention of title’ arrangements to protect their interest in goods supplied will need to change the way they do things and register their security interests on this new national register to protect their interests.
The centrepiece of the reform, the PPS Register, is expected to be available for searches and registration in May 2011.
The Attorney-General’s Department has recently:
1. Released the PPS Regulations and Commentary for public comment. Submissions closed 4 June 2010 and it is expected that they will be finalised by late 2010. A discussion of the Regulations may be found in our latest newsletter.
2. Developed a website (www.ppsr.gov.au) which contains all the material produced by the Department relating to the PPS. The Information Sheets are a particularly useful summary of main elements of the new regime.
Businesses will need to be ready in advance of the May 2011 deadline and particularly should be looking to have their terms and conditions reviewed once the PPS Regulations have been finalised.
Please contact Peter North on (03) 9623 1035 or petern@lewisholdway.com.au to discuss how the Personal Property Securities regime may affect your business.