A significant change to the Personal Properties Securities Act 2009 (PPSA) could make life easier for Dealers.
The Personal Property Securities Amendment (Deregulatory Measures) Bill 2014 (Bill) has recently been tabled in Federal Parliament and may change how cars under finance and serial numbered goods are protected under the PPSA.
For car dealers specifically, if the Bill is passed, vehicles that are leased or subject to finance for a period of less than 12 months will not be required (or permitted) for PPS registration.
The most obvious advantage of this will be significant savings in compliance costs. However, other positive flow on effects are expected, including less pressure on small-medium businesses to make registrations to avoid losing their security interests in serial numbered goods that are leased or hired out.
Currently, serial numbered goods (leased for a period over 90 days) are considered a PPS lease under section 13 of the PPSA.
The proposed amendment to this section will see that leases of serial numbered goods over 90 days, but less than one year, will no longer be PPS leases.
Since the PPSA began, section 13 of provisions has provided much confusion and administrative issues for small-medium businesses. Hire businesses for example have experienced particular trouble, with many entering into hundreds of leases every week and as a result, becoming overwhelmed with paperwork.
It is hoped that the proposed changes in this Bill will alleviate the pressure of registering excessive data on the PPSR.
As reported in the last issue of Automotive Dealer a full review of the PPSA announced by Attorney-General, Senator George Brandis QC, is currently underway. The AADA has sought comment from its members and its submission will be based on Dealer feedback.
Watch this space for more PPSA updates as they arrive.