What is the PPSA? Personal Property Securities Act
- Arnold Shields
- Feb 2, 2012
- 2 min read
Updated: Jun 6
The Personal Property Securities Act (PPSA) came into effect on 30 January 2012 and introduced sweeping changes to how businesses in Australia must manage and register security interests over personal property. The Act established a single, national online register — the PPS Register (PPSR) — replacing various older systems, including the ASIC company charge register and REVS (Register of Encumbered Vehicles).
If your business supplies goods, leases equipment, or provides finance secured by assets, the PPSA affects you.
What Is Considered Personal Property?
Under the PPSA, personal property includes a wide range of tangible and intangible assets, such as:
Goods and inventory
Machinery and equipment
Motor vehicles
Agricultural products
Intellectual property
Bank accounts
Cash
Receivables and book debts
If you hold a security interest in any of these, even under agreements that previously didn’t require registration, you now must consider PPSA compliance.
Common Transactions Now Covered by the PPSA
You must register interests under the PPSA for many standard commercial arrangements, including:
Fixed and floating charges
Chattel mortgages
Hire purchase agreements
Conditional sale agreements (e.g. retention of title clauses)
Long-term and finance leases
Consignment arrangements
Factoring and receivables financing
If these interests are not registered and “perfected,” your rights may be lost to another party who has properly registered, especially in the event of insolvency.
Why Is PPSA Compliance Important?
The PPSA introduces the concept of perfection — securing your interest by registration, possession, or control. Without perfection, your rights in the asset may be unenforceable, even if you have legal ownership.
Perfection ensures your interest is protected against third parties and insolvency. Failure to register may result in losing ownership rights, even in assets you’ve supplied or financed.
What Do You Need To Do Now?
To stay compliant and protect your interests:
Review all documentation – Identify whether you hold or provide security interests.
Amend contracts and agreements – Ensure they include provisions to comply with PPSA requirements.
Register security interests on the PPSR – This is the only way to perfect most security interests.
Seek legal and accounting advice – Ensuring accurate registration can be complex and must be handled carefully.
Don't Risk Losing Your Rights
At Dolman Bateman, we help businesses navigate the complexities of the PPSA. Whether you're a supplier, lender, or lessee, we’ll help you identify your exposure and take practical steps to secure your assets.
Get in touch today to protect your business interests and ensure PPSA compliance.
Disclaimer:
The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decision.
