The Personal Property Securities Register
What is the PPSR?
The Personal Property Securities Register (PPSR) is a national database that stores details of security interests registered against personal property.
The register is administered by the Insolvency and Trustee Service Australia (ITSA) and is searchable by consumers and businesses alike.
Examples of personal property
Personal property is a legal term for any property that is not land, buildings or fixtures. Examples are:
• motor vehicles, boats or aircraft
• crops, cattle and other livestock
• stock in trade, artworks and equipment
• other goods, new or second-hand, whether owned by businesses or individuals
• intangible property, such as patents, copyright, commercial (not government-issued) licences, debts and bank accounts
• financial property such as shares, cash or cheques.
Why use the PPSR?
When selling goods on retention of title or consignment
Making a registration shows searchers that you are claiming an interest in the goods or assets you are selling on retention of title terms, or have consigned to someone else to sell on your behalf. This interest means the goods or assets secure the debt or obligation that someone owes you. The registration protects your interest in the goods or assets should the customer default or go broke.
If you don’t make a registration on those goods or assets and your customer goes broke before they have fully paid you, your stuff may be sold to pay secured creditors first. If you are not registered, you will be an unsecured creditor in an insolvency and may not recover much, if anything, of what you are owed.
If you register as early as possible, you stand the best chance of being first in line over other creditors. It also helps you to protect your interest even if the goods or assets are sold on, mixed or installed onto other goods.
When leasing, renting or hiring out goods
If the lease or hiring arrangement was entered into on or after 20 May 2017 and is for at least two years, or an indefinite period that will last for more than two years, then this applies to you.
If the lease or hiring arrangement was entered into before 20 May 2017, see Leases and Bailments for more information about how this applies to you.
Think you’re already covered with a contract?
A retention of title clause (indicating that title remains with you until goods are paid for in full) in your contract or invoice, no longer protects you on its own.
If you don’t make a registration, your retention of title clause is unlikely to stack up against others when you need to rely on it.
In other words, someone else who has registered an interest is ahead of you in the queue should your customer default or go broke.
Make sure you back up your contracts by registering your interest.
For more general information take a look at the PPSR website here