Personal Property Securities Act (PPSA) Workshop Series

What is PPSA?

The Personal Property Securities Act (PPSA) is a complex topic so we’re breaking it down into “bite sized” pieces.  The following articles identify the five principle ways in which the PPSA is likely to have application to your business.

Whilst the PPSA is confusing, one of its most significant benefits is its ability to improve the likelihood of a return from the insolvency of your customer.  It can provide a very significant degree of protection from your customer’s insolvency.

We’ve all experienced (and will continue to experience) the insolvency of a customer and we resign ourselves to getting little if anything back on the money we’re owed.  Often whilst the secured creditor’s (usually the Banks) recover their debts.

Well the PPSA changes all of this.  Compliance with the PPSA promotes suppliers to secured creditor status for the goods/equipment they’ve supplied.  Your security ranks ahead of the traditional secured creditors, you can now outrank the Banks!

The cost of compliance is very reasonable (you’ll likely spend more on coffee each year).  Usually, only one registration over your customer is required, attracting a Government charge of $6.  This registration will cover every transaction you have with your customer for the next 7 years (about 85c a year for each customer).

So, if it helps protect you from the insolvency of a customer and costs so little why aren’t you complying with the PPSA?  Most likely because it hasn’t been explained clearly enough to demonstrate how it impacts your specific business.

If you have business loans (in fact any loans at all), sell goods on credit, lease or rent equipment to your customers, use an asset protection structure or are thinking of buying or selling a business, the PPSA provides you with significant protection. Stay tuned to our future Newsletters in which these topics will be discussed.

The PPSA can be remarkably simple.  It’s all about security.  If you have security over something, you better register it on the PPS Register (massive online ‘noticeboard’ of security interests).  Registration ensures you can use your security.  Unregistered security will lose to registered security.  The first registered security will beat later registered security.  This will make more sense as we progress through our newsletters.

Our thanks to Simon for his help.  With over 25 years experience as a former Insolvency Practitioner and having advised on the PPSA since before its commencement (in early 2012), he’s one of Australia’s leading advisors on the practical application of the PPSA.

If you’re wondering whether the PPSA applies to your business, PPSAdvisory will happily perform a free Impact Assessment for Thorntons clients. They’ll review your business operations and tell you how the PPSA impacts your business.  They’ll explain how the PPSA works, why it’s important and they’ll also provide a cost/benefit analysis of compliance, enabling you to make an informed decision.  Please contact us directly and we’d be happy to facilitate a meeting with Simon (he loves the PPSA).

If you think you’re already complying with the PPSA, why not let PPSAdvisory perform a free Desktop Assurance Review?  They’ll perform a high-level review of your existing PPS registrations and your registration policy, identifying any errors or departures from ‘best practice’.  It’s a great ‘health-check’ to make sure you’re complying with the law.

Have a question? Connect with us.

At Thorntons, we bring your business and personal finances into focus. Get forward thinking professional accounting, business, and tax advice to help you make the right decisions. Get in touch with us below.

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DA Lynch & TD Lynch & the Westocutty Trust
Our farming business has been connected with Thorntons since their business commenced in Cunderdin. From Bill Thornton to his son Mark and now Bill Mattingly, we have found them to be a very professional, knowledgeable and friendly Business Advisory team. They cover all areas of our business needs, from accounting services, tax planning to farm business succession; they are an integral and very important part of our business. I would have no hesitation in recommending Thorntons to any farming business
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Jason & Renaye Stokes, CJ Stokes and Son, Chapman Valley
We have been with Thorntons since 2004. They have uncompromisingly provided our farm with advice above and beyond accounting services. The way they provide us with advice makes us know they care about our success.  They update us with the latest legislative changes that may benefit our operations and communicate it to us in our lingo.  We find we can call Thorntons anytime and all of the staff are able to help. Troy Anderson has been the expert behind our succession planning with fairness and authority he has facilitated our move forward and assisted us to be our best. Trusting Thorntons with our business gives us more time to focus on operations knowing they are always giving us the best advice.
Paul & Jocelyn Seymour, DJ Seymour & Co, Miling WA
Troy has been our accountant for five years and we always find him to be very professional, friendly and of high integrity.  He responds promptly to any queries we have and gives sound advice.  We would highly recommend Troy to anyone looking for an excellent accountant.
Juliet Vilé, Fencespot, Wangara WA
We recently made some changes in our life, moving from broad acre farming in the Wheat Belt to owning an Irrigation business in the South West.  In doing so, we researched for a new accountant who understood broad acre farming, small business as well as assisting us with sound financial advice for our future.  Thornton’s were recommended to us by several friends.  We are really happy with how accessible the team are at Thornton’s, their level of knowledge and continuous communication.
Tom & Felicity Pollard, Thinkwater, Dunsborough WA
Thorntons is one of the best accounting firms I have dealt with.  We always receive honest and professional advice especially from Troy and his team. I would strongly recommend this company without hesitation.
Gavin Vilé, Fencespot, Wangara WA
We have been with Thorntons for over 30 years. Troy Anderson our accountant for the last 15 years has always had our back. Troy has not only helped us with day to day accounting but careful tax planning and a delicate succession plan has been achieved with success. I am very happy with the service we receive and consider Troy as one of my true friends.
Doug Ellis, PJ Ellis & Co, Kulin WA
Perth Anaesthetic Group has worked with Thorntons Accountants and Business Advisors since 1987. I have personally worked alongside Abha and the team for the last 8 years, within this time I have found their services and professionalism to be exceptional. Company financials are always completed as per the scheduled date and professionally presented. In recent times with Covid, being a small business we have needed help with Jobkeeper and eligibility for Stimulus packages, I have found Abha and the team have gone above and beyond to help and guide us to ensure we have the most up to date information to determine eligibility. I am reassured having Thorntons as our Accountants/Business Advisers and look forward to continuing working with Abha and the team.
Jane McGrath – Practice Manager – Perth Anaesthetic Group
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Cameron Weeks, Planfarm Director
I work collaboratively with Troy, Marie and their team in the areas of estate planning, farm succession planning and related party property transactions. Troy and Marie's attention to detail and professionalism are of the highest standard and they work hard to attain practical and viable business solutions for their clients. They are both clear communicators, accessible and a pleasure to work with.
Julie Murray, Solicitor, Yarramundi Law
Our company has found Marie and the team at Thorntons to be extremely helpful in their approach to our business. They are always ready with a reply to our emails or phone calls. Nothing is too much trouble for Marie and the team, they go above and beyond to help us with our taxation. I would recommend them anytime.
Splitrock Farming Co., Kerry Robinson
Our business relationship with Thornton's goes back many years, in fact we may well be their longest running client, having been with them for over 40 years. We have come along way from humble beginnings as a bricklaying contractor to where we are today as an established leader in the field of commercial heritage restoration and sustainable building design in multi-unit residential developments, however, the level of respect, service and courtesy has admirably remained unwavering over that time. Thornton's have constantly provided service of the very highest level, are responsive to our needs and are progressive in their offerings without ever being pushy. Importantly, the people we need to speak to are always available when we need assistance or advice on a range of matters and deliver when they say will. They are one of our most trusted partners in business. Importantly, the relationship while professional, is always conducted in a friendly and open manner. We would recommend Thornton's in the highest possible terms to any potential clients.
Daniel Colgan – Director – Colgan Industries Pty Ltd