Lack of knowledge of the Personal Property Securities Act (PPSA) and the Personal Property Securities Register (PPSR) could be a ‘time bomb’ for businesses.
Millions of dollars have already been lost by businesses that paid for an asset but hadn’t registered that asset on the PPSR. Whilst it’s voluntary to register, businesses need to be alert to the requirement that, if they are going to register, they have to do so within a very tight registration time period. This highlights the need for a proper due diligence review to be undertaken now (if not yet done) so the decision can be made promptly on whether the transaction or asset rental, lease or storage is to be registered on the PPSR.
The PPSA legislation can affect virtually any type of business. Businesses need to be continually reviewing transactions relative to debtors, loans made to other people, intellectual property arrangements, service company arrangements and asset rental, lease or storage.