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What is the PPSR?

The Personal Property Security Register (PPSR) provides a single national online notice board of peoples’ security interests in personal property. The register is administered by the Insolvency and Trustee Service Australia (ITSA).

To understand how the register works and its relevance, it is important to understand the meaning of two terms that underpin the register; personal property and security interest.

Personal property – what does it mean?

Personal property is property other than land, buildings and fixtures (and some licences). Personal property includes:

  • Goods;
  • Plant and equipment;
  • Cars, boats and planes;
  • Artwork;
  • Licences, shares, accounts receivable, contract rights; and
  • Intellectual property.

Security interest – what does it mean?

A security interest occurs when there is an agreement between two parties and one party (the secured party) secures its interest in the personal property (the collateral) to make sure the other party (the grantor) either pays money or performs an obligation.

Security agreements, which create a security interest include:

  • Leases;
  • Hire purchase agreements;
  • Conditional sale agreements (eg an agreement with a retention of title clauses);
  • Fixed and floating charges;
  • A chattel mortgage;
  • A consignment; and
  • An assignment.

The Personal Property Security Act 2009 acknowledges security agreements that are not in writing, but it could be difficult to prove the security interest has been created if the agreement has not been written and signed by the grantor (that is the person who either pays money or performs an obligation). Therefore we recommend that all security agreements are writing and signed by the grantor.

Registering your security interest

All security agreements entered into after 30 January 2012 must be registered for the security interest to be valid and recognised. This means that if the grantor goes into liquidation you will be a secured creditor and have a security interest in the personal property that has been registered. However, if you do not register your security interest, it will not be recognised and you will join the pool of unsecured creditors with an unsecured debt.

Anyone can register a security agreement on the PPSR or search to see if a security agreement has been registered for an item of personal property or against a grantor. The service is not free; a fee is charged for both registration and searching.

The information contained on the register must be correct for the registration to be valid therefore we recommend that you obtain legal advice prior to making a registration.

To read more about the PPSR, please see our articles:

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To discuss our PPSR work or any of our other services, call us on 07 3128 0120 or contact us here.