Amendments to the Personal Property Securities Act 2001 (Cth) so that a lease of serial numbered goods will only be deemed to be a PPS lease if its term exceeds 12 months have been passed and will commence on the earlier of a date set by proclamation or 25 December 2015. The amendments will reduce confusion and risk to hire businesses by minimising the need to make registrations in respect of leases of a term of less than 12 months.
The Personal Property Securities Amendment (Deregulatory Measures) Bill 2015 (Bill) (which was originally introduced into Parliament in March 2014) has now received Royal Assent and will commence on the earlier of a date set by proclamation or 25 December 2015 (being 6 months after the date of Royal Assent).
The Bill amends the Personal Property Securities Act 2009 (Cth) (PPS Act) to delete section 13(1)(e), which will have the effect that leases of serial numbered goods (such as aircraft, motor vehicles and boats) will no longer be deemed to be “PPS leases” for the purposes of the PPS Act if they are for a term for 90 days or more. Leases of goods (whether serial numbered or not) will only be deemed PPS leases if they are for a term longer than 12 months or an indefinite term.
According to the Explanatory Memorandum, the amendment will reduce confusion, risk and cost to hire businesses by minimising the need to make registrations in respect of leases of a term of less than 12 months, and will also bring the PPS Act into alignment with personal property securities regimes in other common law countries (such as New Zealand and Canada).
The amendment will only apply to leases entered into after the amendments commence.