The Government is introducing more flexibility as to the start date for the new personal property securities system.
The Personal Property Securities Act 2009 (“PPSA”) currently provides that the registration commencement time is 1 February 2012 or an earlier date determined by the Minister. This will be amended so that the Minister can also determine a later registration commencement time. This amendment is contained in the Personal Property Securities Amendment (Registration Commencement) Bill 2011, which was introduced in the House of Representatives this morning (12 October 2011).
The Attorney General’s Department had previously announced that a proposed start date of 31 October 2011 would be delayed because of the need for a final stage of testing of the register. No new proposed start date has been announced. This new amendment now gives the Government more flexibility on a start time, in case 1 February 2012 becomes difficult.
As part of the PPSA process, a migration time for existing registered security interests is intended to start one month before the registration commencement time. Currently that would be no later than 1 January 2012, and the amendment bill is introducing the same flexibility for this migration time.
If the one month migration time is to be preserved, the Minister would need to make a determination of new dates by no later than 1 January 2012, so a further announcement on start dates could be expected before the end of the year.
For our previous Alerts and publications on the Personal Property Securities Act 2009 and its implications, please visit our website.