The PPSA commenced on 30 January 2012 and is a national act that sets out the rules for security interests in personal property. Personal property is the description for all property other than real property (land and buildings). The PPSA established uniform rules for:
A lease or bailment of personal property will be a PPS Lease if the lease or bailment is:
PPS Leases have caused two main problems since the introduction of the PPSA, including:
The Bill amends the definition of PPS Lease in the PPSA by:
This Bill when passed will significantly reduce the regulatory impact which the PPSA was having on short-term hire and rental businesses, the majority of which are SMEs. The hire and rental sector almost exclusively uses indefinite term leases which usually run for less than a week and rarely exceed a period of two years.
An amended section of the PPSA will continue to capture longer term high value hire and rental industry leases.
Our team has several PPSA subject matter experts, and are well placed to review your PPSA policies and procedures, advising on their effectiveness or otherwise in the event you or one of your customers is experiencing an insolvency event. To ensure your security interests are not at risk, contact us for more information and a free initial discussion.
We can also undertake an independent assessment of your business to assist you to determine the company’s financial position and identify any risks to the business and potential liability for officers of SME companies.
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