Small Business Basics: Personal Property Securities Register, some practical examples

Whilst there has been some press about the Personal Property Securities Register, this week I recieved my first register document regarding our office photocopier.

So I thought I would explain how business owners might use the register, or may find themselves on the register.

1. Finance leases. The finance company will register its interest in the property concerned with the register.
2. Property lease. If a lease includes a clause where the landlord contributes to the fit out of a tenant (personal property), then you could expect the landlord to register the interest in the fit out.
3. Motor Vehicles. State based Vehicle Securities Registers have been replaced by the PPS Register.
4. Fixed and floating charges. The current ASIC register of fixed and floating charges has been migrated to the PPS Register. Importantly all future charges must be registered with the PPS Register
5. Business operators who sell personal property on credit, consignment, or on a retention of title arrangement need to register their interest in the property on the PPS Register.
6. Business owners who are about to purchase personal property, such as valuable second hand goods, should search the register  before buying to make sure that the property is free of a security interest.

The above is intended to provide practical examples of the application of the PPS Register. It is by no means comprehensive, however the securities website www.ppsr.gov.au is quite comprehensive.

If you would like clarification regarding the Register and how it impacts your business, leave a comment below or email adam@mbrgroup.com.au