The start date of the Personal Property Securities regime has been delayed to 30 January 2012. Further, there is a significant possibility that the start date may be delayed even further if the IT system is not ready.

Parliament enacted the Personal Property Securities Amendment (Registration Commencement) Act 2011 (Cth) on 29 November 2011 which made the necessary amendments to the Personal Property Securities Act 2009 (Cth) to allow the start date to be delayed again if necessary.

The extension of time beyond 30 January 2012 may be required because of difficulties associated with the building the IT system required to operate the Personal Property Securities Register (“Register”). The Register was originally slated to be “live” by May 2010 but has been delayed numerous times.

Currently security over personal property is managed in many different ways according to the type of personal security and the jurisdiction that you're in. The reform will establish a national registration system (the Register) and dispense with the 70 odd pieces of legislation currently in operation.

It is important that businesses affected by this Reform are prepared by implementing appropriate changes to their terms of sale and business processes. If you have any questions, including if you would like assistance in deciding whether your business will be affected, please contact Peter North on 03 9629 9629 or by email.