On 30th January 2012, the Personal Property Securities Act (“PPSA”) was enforced and with its enforcement, the Personal Property Securities Register (“PPSR”) came into existence. The PPSA brings together over 70 State, Territory and Commonwealth laws into one unified national system and replace over 40 unequal registers into a single National Register. The objective for the introduction of PPSA was to build a transparent system which would offer businesses in Australia, a certainty and efficiency in the commercial sector.

According to the PPSA, Personal Property Securities include security interests like floating charges, chattel mortgages, finance leases, margin loans, commercial consignments, etc. but the main exclusions under the PPSA are water rights and land.
Basic objective of the PPSA is to eliminate any mistake as to ownership of any good which applies to almost all forms of intangible and tangible property owned by any type of legal entity. Thus, the PPSA provides priority to matters relating to insolvency appointments. Irrespective of whether any title exists or not, unless security over any good(s) is listed with the PPSR by its true owner, the good will be taken into the account of the person having possession of the good and it can be sold to pay off the creditors of that very business.

The easiest way to register security interest is to visit the PPSR website and click on ‘create a new registration’. The Attorney General for Australia will determine the registration fees and search of the PPS Register. Fees are chargeable for registration, depending on the extent of registration. Registration on the PPS Register is a form of perfection under the PPSA. Secured party will have two main benefits if registration is done by Perfection. These are as follows:


  1. a) it will define the priority status the security interest has in relation to the other security interests in the collateral; and
  2. b) it ensures that the security interest survives bankruptcy or insolvency of the grantor, i.e. the person who receives assistance to acquire the collateral.



The application for registration must consist of a financing statement with particulars of the security, parties to the transaction and the collateral. Once the registration of an interest in property is done, any person can search and find all the financing statements relating to that particular grantor or any specific item of property.

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