PPSA: Two weeks until the end of transition – Protect your rights or risk losing assets

​The transitional period provided by the Personal Property Securities Act (PPSA) ends in approximately two weeks.

While debate exists as to whether the transitional period will conclude at midnight on 29 January 2014 or at midnight on 31 January 2014, in either event it is important that you act as soon as possible to ensure that you and your business are PPSA-compliant.

As we have set out in previous Updates, compliance with the PPSA may be required by any person or entity (including trusts and inter-company arrangements) which:

  • takes security / rights in assets owned by others (eg secured lending); and/or
  • owns assets which are in the possession of another (eg leasing, retention of title, consignment, bailment).

If you enter such arrangements, it is important that you ensure that any existing or future rights are protected under the legislation. If you fail to do so, those rights may be lost.

Contact

Katherine Payne

Katherine is an insolvency and commercial litigation specialist with a focus on the PPSA and its implications.

You might be also interested in...

Banking & Finance | 3 Dec 2013

Expiration of PPSA temporary protection imminent – Protect your rights and ensure that you are PPSA compliant

On 30 January 2012 new legislation called the Personal Property Securities Act (PPSA) came into effect in Australia.

Insolvency & Restructuring | 3 Mar 2014

Liquidator not obligated to retain funds in the absence of an assessment

On 21 February 2014 the Federal Court handed down its decision in Australian Building Systems Pty Ltd (in liq) v Commissioner of Taxation [2014] FCA 116 with the result that liquidators and receivers and managers cannot be held personally liable for any CGT liability subsequently assessed as due (where funds are remitted in the ordinary course and to secured creditors before the Commissioner of Taxation issues the assessment).