About PPS reform

The aim of PPS reform is to improve the ability of individuals and businesses, particularly small-to-medium size businesses, to use more of their property to secure lending. PPS reform follows the successful example of other countries – in particular, Canada and New Zealand.  

The introduction of a national system in Australia will remove the previous limitations or uncertainty on the use of personal property as security.

Prior to PPS reform, the rules for registering a security interest were different for the Commonwealth and for each state and territory. Each had their own personal property schemes with different laws and many separate registers. The PPS Register replaces the many states territories and Australian Government registers, and brings them together into one national system.

Streamlining and accessibility

Using the previous system to register a security interest in personal property was costly depending on the type of personal property. The overlap between the many laws led to duplication and uncertainty. Whether a personal property security could, or needed to be, or should be registered, depended on the:

  • jurisdiction
  • type of interest
  • class of debtor
  • type of property
  • location of the property, and
  • type of transaction. 

Some personal property security transactions had more than one registration requirement in the same jurisdiction or needed to be registered in more than one state or territory.  

The new PPS Register provides one system for the registration of all security interests in personal property, and provides a more streamlined and accessible system for consumer and business users.

New rules to establish priority

Importantly, personal property reform provides new rules about what is regarded as a security interest, and introduces a priority order when a number of security interests are registered against the same personal property. To take advantage of the new rules, security interests must be registered within the required timeframes. For further information about the new rules, see the for business page.

Last modified 15/08/2013 9:07 AM
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