The Act does not apply to land or interests in land. However, it applies to most other forms of property including motor vehicles, aircraft, watercraft, intellectual property, bank accounts and agricultural products.
The Act requires that any security interest, including a charge, mortgage or lease be registered on a centralised register known as the Personal Property Securities Register (“PPSR”). The PPSR replaced a series of registers mainly maintained by the States and Territories, such as REVS. The PPSR also allows for the registration of new interests that did not previously require registration, such as retention of title clauses.
The Act affects a whole range of businesses including those that hire and rent goods, or provide goods on consignment or on a retention of title basis. It also affects any individual who is in possession of goods which are not owned outright. Failure to register interests in property in accordance with the Act can have dire consequences in the event of insolvency.
For quality advice on the implications of the Act, the PPSR and how it affects your business, contact Woodgate & Co.