In January 2019 we reach the 7 year anniversary of the PPSR. It’s an important date because this means that 7 year registrations will begin to expire. Once they lapse, they cannot be extended – as you can only renew or amend current registrations. If your agreement continues past the registration expiry date, you need to extend your registration before it expires to ensure continuous protection and priority.
Act now to protect your property
This week, I strongly encourage you to take the three easy – but essential – steps to ensure continuity of your security interest:
Review your current registrations – This is quick and easy to do on the PPSR, which allows you to run a free report that lists all the registrations due to expire for your secured party group in a specified date range. I suggest you check all of your registrations that expire in 2019.
- Double check the details – You should be regularly checking your registrations to make sure all the details are up to date. Renewal is a good opportunity to make sure you’ve got the right ACN / ABN, company name and current address for your client – and to update any information from your end. Perhaps you’ve changed the way you describe your goods?
- Extend your registrations – Use this web link to renew your registrations and make any necessary changes. Once you’ve retrieved your PPSR registration, you can select Change registration end time and choose the new expiry date.
Build in a regular review process
Remember, from next year registrations will continue to expire, so this is also a good time to build regular PPSR reviews into your risk control processes. Bigger companies use software to automatically check their registrations. But if you’re doing it manually, you might want to build a PPSR review into a regular activity – such as your quarterly BAS processes.
This is the equivalent of changing the battery in your smoke alarm when daylight savings ends. You need a guaranteed, regular reminder to keep an eye on your registrations – to help stop them from expiring if you still need them. It should become part of business as usual.
Don’t leave it to the last minute
The time for ‘set and forget’ registrations has passed. If you’re a secured party and you haven’t checked your registration end dates – act now. Use the free report on the register, extend your registrations and keep your interests protected by building in a regular review in your business processes. If you’re acting on behalf of a third party – be proactive and help them review their registrations.
31 January is coming faster than you think. Review your registrations today.
By Gavin McCosker, Registrar of Personal Property Securities, Australian Financial Security Authority