AFSA have confirmed that the repeal section of 13(1)(e) of the Personal Property Securities Act will come into effect from 1 October 2015. This section applies to serial numbered goods including motor vehicles, aircraft, watercraft and other items, to be PPS leases for the purposes of the Act if they have a term of 90 days or more.
What these changes mean?
Any business which wants to lease out goods with serial numbers for 90 days or more but for less than a year, may no longer need to record these transactions on the Personal Property Securities Register. Leases for one year or more, or of an indefinite period of time, are unchanged, no matter if the goods contain serial numbers.
For more information visit the PPSR website at ppsr.gov.au.
If you would like more advice on PPSR matters, please obtain specialist legal advice or contact one of our expert advisors on 1800 246 801.