The Personal Property Securities Amendment (PPS Leases) Act 2017 (Cth) (Act) received Royal Assent on 19 May 2017.
The Act amends section 13 of the Personal Property Securities Act 2009 (Cth) to:
- extend the minimum duration of PPS leases from more than one year to more than 2 years; and
- provide that leases of an indefinite term will not be deemed to be PPS leases unless and until they run for a period of more than 2 years.
According to the explanatory memorandum, as a result of the amendments, very few hire and rental industry related transactions will be caught by section 13 due to the increased minimum duration, and the amended section 13 will continue to appropriately capture longer term high value hire and rental industry leases.