A Bill was introduced into Federal Parliament today which, if passed, will amend the definition of “PPS lease” in the Personal Property Securities Act 2009 (Cth) (PPSA).
The amendment, if passed, will remove the provision in the PPSA which deems a lease of goods with a serial number (being certain aircraft assets, motor vehicles and watercraft) to be a PPS lease where the term of the lease is 90 days or more.
Leases of goods without a serial number are only deemed to be PPS leases if the term of the lease exceeds one year.
The removal of the provision will mean that the same test will apply to determine whether a lease or bailment of goods is a PPS lease, regardless of whether the goods bear a serial number or not.
The changes set out in the Bill will only apply to leases entered into after commencement of the amendment. If passed, the amendment will take effect on a date to be proclaimed (but no later than six months after the Bill receives Royal Assent).