The Attorney General announced on 4 April 2014 that there will be a statutory review of the PPSA. The objective of this review will be to identify any problems and concerns with the PPSA as well as to reduce any unnecessary burdens on small businesses.
An interim report is due on 30 June 2014, with a focus on issues in relation to small businesses. The final report is due on 30 January 2015.
Some of the considerations to be included in the review are:
- the causes of non-compliance with the PPSA, particularly among small businesses;
- opportunities for minimising regulatory and administrative burdens particularly on small businesses and consumers;
- opportunities for further efficiencies including the simplification of the PPSR; and
- the scope and definition of ‘personal property’.
The review must include consultations with relevant stakeholders, in the hope to ensure that all interested persons are represented.
The announcement of the review comes soon after the Personal Property Securities Amendment (Deregulatory Measures) Bill 2014 was introduced into Parliament proposing to change the definition of PPS Lease, and potentially the definition of ‘motor vehicle’, with the aim of alleviating administrative burden on small to medium sized hire businesses.
This will be an opportunity to consider the inconsistencies and complexities that many face when dealing with the PPSA including registration, release and properly identifying and registering security interests to ensure that all parties are protected in the manner intended.