Are your PPSR registrations about to expire? A lapsed registration could void your security interests

January 16, 2019

The Personal Property Securities Register (PPSR) was introduced on 30 January 2012 and was designed to offer protection against the loss of property should a customer default on payment or become insolvent. As the 7th anniversary of the PPSR approaches, it’s important to note that security interests with seven year registration periods will start to expire from 30 January 2019.

Why renewal is critical

Any business that registered a security interest on the PPSR shortly after its release in January 2012 must review those security registrations immediately to determine whether renewal is required. 

The PPSR generally operates on a first-registered priority basis, which determines the order in which creditors are paid.  It is therefore critical to renew an existing security to ensure it retains its original registration date and priority. 

Once a security has expired, it cannot be extended or renewed.  While a new security can be registered, you risk losing the priority (rank) of your original registration to another secured party already on the register.

There is also a risk that, if the business granting your security becomes insolvent within 6 months of the re-registration of an expired security interest, your security interest may not be effective.  This could result in you missing out on money owed to your business.

Where to begin

You should review, amend and renew/extend your PPSR security interests immediately.  Note that some registrations were automatically transferred from other registers to the PPSR, so it’s important to check your security interests – even if you don’t think the upcoming deadline applies to you. 

If any changes have occurred since the original registration, (e.g. change in party details such as ABN, company name or contact details), the registration should be updated prior to renewal.

Any registrations that are no longer required can be allowed to lapse, or can be discharged for free.

The PPSR has a free Registrations due to expire report tool available at: https://www.ppsr.gov.au/registrations-due-expire-report.

Managing your ongoing PPSR interests

Ongoing management of your subsequent PPSR security interest renewals should become a regular function of your business operations.  It is important that you implement a process to identify and action upcoming expiry dates to ensure your registrations continue to protect your interests.

McGarry Partners can help

We can help you navigate the PPSR landscape by assisting you with using the expiry date search tool, amending and renewing existing registrations, and registering new or expired security interests.  We can also help you design and implement procedures to manage your ongoing PPSR interests.

If you would like more information about the PPSR or assistance with managing or registering your security interests, please contact our team on 07 3217 2477.

General advice warning:  This publication is intended for information purposes only and is not advice.  You should not rely on this publication to make any decisions.  You should obtain advice that is specific to your circumstances.