The PPS Bill that proposed amendments to the meaning of a ‘PPS Lease’ in the Personal Property Securities Act has been passed.
On 6 March 2017, we reported that the Federal Government introduced the Personal Property Securities Amendment (PPS Leases) Bill 2017 to:
- amend section 13 of the Personal Property Securities Act 2009 (Cth) (PPSA) to extend the minimum duration of PPS Leases from more than one year to more than two years; and
- provide that a lease of an indefinite term will not be deemed to be a PPS Lease unless and until it runs for a period of more than two years.
On 11 May 2017, the Bill was passed by both the House of Representative and Senate.
The Bill will now go to the Governor-General to receive Royal Assent. Once it has received Royal Assent the Act, and its amendments, will take effect the next day.
Please note, as we previously reported, the amendments will not have retrospective effect. They will only apply to new PPS Leases of more than two years.
An existing lease or bailment of goods deemed to be a PPS Lease before the amendments come into force will not be affected by the changes.