Changes to PPSA – 90 Day lease rule for serial numbered goods
The Personal Property Securities Register (PPSR) is the national online database of security interests in personal property in Australia.
Buyers can check the PPSR to see if the valuable second-hand goods they want to buy are debt free.
Businesses selling on terms, such as retention of title or consignment, or leasing, renting or hiring out valuable goods can register their security interest on the PPSR.
Important changes to the Personal Property Securities Act (PPSA) came into effect on 1 October 2015.
The change will apply to serial numbered goods and has removed the provision that a lease or bailment of a serial numbered good of 90 days or more is considered a security interest.
What will this mean?
If your business leases serial goods including cars, boats, airplanes, forklifts and other items for more than 90 days but less than one year, you may not need to register the items on the PPSR.
These changes are not retrospective.
Personal property securities could affect your business in a number of different ways. For more information please don’t hesitate to contact the team - Noosa 5440 4800