What is the PPSR?

The Personal Property Securities Register (PPSR) provides a single system where all registrations of security interests in personal property have been combined to create a comprehensive, publicly accessible database. This database has been created so it is possible to view security interests registered against specified collateral. It is available to the public and can be used by consumers, businesses and the finance industry, as well as by those who sell collateral on consignment or credit.

The new PPS Register was introduced nationwide in January 2012, providing a streamlined service that is easily accessible to both businesses and consumers. The initiative behind incorporating registers into one national database is to provide fast, accurate information on registered personal property in Australia, instantly allowing the public to see whether there is security interest registered against it. The register also aims to assist in increasing the availability of finance, and to reduce possible additional costs that can be associated when making insufficiently informed decisions on purchases.

Those who use the PPSR are purchasers, interested parties, or secured parties (those who have registered their interest against the personal property). To understand the functions of the PPSR fully, it is important to know the basic concepts involved.

What is defined as personal property?

Any form of possession, not including land. It must be possible for this “personal property” to be transferred ownership from one party or individual to another. For example, this includes tangible or physical items such as cars, boats, art, shares, livestock, but also in tangible concepts such as intellectual property or licensed rights.

What is a secured party?

A secured party is any entity that has interest in collateral. Basically, this means that the specified party has an interest in seeing that the total value of the collateral is paid in full to the provider of the collateral. These parties use the PPSR to register the value and information related to their collateral for public use, and to protect themselves against loss. The secured party could be an individual or a company.

Why register your clients on the PPSR?

Imagine the PPSR as a noticeboard of security interests. By registering client security interests there are several advantages. Firstly, a priority ranking can be established between registrations made against the collateral, and secondly in cases of liquidation or bankruptcy, the registration of interests confirm who is entitled to be compensated first. Being able to register your client’s security interests is a valuable service, as it can help protect them from potential financial loss.

Central to the creation of the PPSR is the intention to improve levels of debt protection, both for individuals, and for organisations who have an interest in secured personal property, as well as being for those who are involved in potential transactions related to collateral. As the sole source of national information on personal property, the register aims to eliminate any uncertainties around validity of the search results, as it is committed to supplying the most current information possible.

When did the transitional period provided under the PPSA end?

The final transitional period provided under the Personal Property Securities Act 2009 (Cth) (PPSA) is closed. This ‘period of grace’ provided time for users to update migrated registrations to meet the requirements of the PPSR. The transition period ended on 30 January 2017 for registrations that were migrated without an end date.