Small to medium hire and rental businesses will benefit from reduced PPSR costs, thanks to changes to the Personal Property Securities Act 2009.
What has changed?
From 1 October 2015 the changes reduced the number of leases that hire and rental businesses need to protect with PPS registrations.
Previously leases of serial-numbered goods (such as cars, trucks, caravans, cranes and watercraft) lasting more than 90 days but less than 12 months were deemed PPS leases and needed to be registered.
On 1 October 2015 the definition of a deemed PPS lease was narrowed. Now leases of serial-numbered goods of less than 12 months may fall outside the definition and no longer need to be registered on the PPSR.
This makes the treatment of leases of serial-numbered goods and nonserial-numbered goods consistent. For many businesses the outcome will be less confusion, fewer registrations and lower costs.
What has not changed?
The law reform won't apply to leases:
- With a term of more than 12 months;
- Capable of being renewed beyond a 12 month term;
- Of an indefinite term;
- Entered into before 1 October 2015. It's important to seek legal advice in relation to your specific circumstances to understand the action you should take.
*Moses Samaha is General Manager, Commercial/Property Solutions & B2B Channels at Veda. www.veda.com.au