The Personal Property Securities Amendment (PPS Leases) Bill 2017 (Cth) (Bill) was introduced to the Federal Parliament on 1 March 2017 and seeks to address some of the concerns that were highlighted in the final report on the statutory review of the PPSA.
Specifically, the Bill seeks to amend section 13 of the Personal Property Securities Act 2009 (Cth) (PPS Act) 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, if the amendments are passed, very few hire and rental industry related transactions would be caught by the amended provision due to the increased minimum duration, and the amended section 13 would continue to appropriately capture longer term high value hire and rental industry leases.