Frequently Asked Questions for the PPS

The PPS in Australia is set to radically change the operation of the Finance Industry.

So what is the PPS?

The PPS is the Personal Property Security reform that has been bought about by the Personal Property Security Act 2009. This reform looks to standardise and rationalise all the different Commonwealth, State and Territory laws and Registers into one national system for registering security interests against personal property.

Some of the Registers the PPS will replace are:

  • ASIC – Register of Company charges
  • REVS (in all States)
  • Security Interest of Goods Register (in NSW)
  • Register of Co-operative Charges (in all States)
  • Bills is Sale Register (WA)

And the PPSR?

The Personal Property Security Register (PPSR) is the actual register where all the security interests are lodged and available for searching. This Register is completely electronic and only accessible via a website or B2G (Business 2 Government) interface. No paper facilities will be available.

So what is “Personal Property”?

Personal property is any form of property other than land, buildings or fixtures (which form a part of that land). It can include tangibles such as cars, art, machinery and crops; as well as intangibles such as intellectual property and contract rights. It can be owned privately or by a company or any other non person entity. It can be either Consumer or Commercial property.

What is a Personal Property Security?

A personal property security is when a secured party takes an interest in personal property as security for a loan or other obligation, or enters into a transaction that involves the supply of secured finance. An example is when a person borrows money from a bank and offers the personal property as collateral or security for the loan. The bank’s interest over the collateral is a personal property security.

When does the PPSR come into effect?

The PPSR is due to go Live in October 2011. After that date, no new entries will be accepted into the historic registers with all new registrations having to be completed on the PPSR. The exact Go Live date has yet to be confirmed.

What about my existing Securities?

Securities that are currently registered on the Registers that will be replaced will generally be migrated to the PPSR for you. You will need to check with your specific Register to ensure this is happening and the necessary procedures to "Claim" your security interests on the PPSR.

Disclaimer: This document provides general information about the PPS and the PPSR and does not constitute legal advice. You should seek legal or other professional advice to consider the application of PPS to your individual circumstances.