PPSA Update

The HRIA has warned all members to be aware it has now been two years since the Association and industry lobbied to have the amendment to the definition of a ‘PPS lease’ under the PPSA (Personal Property Securities Act 2009) enacted.
The effect of that amendment or reprieve meant hires that commenced after 20 May 2017, unless exceeding two years, were not subject to the PPSA regime.
James Oxenham, HRIA CEO said any hires which were entered into after 20 May 2017 and which are still ongoing, are approaching PPS lease territory even under the amended PPSA. “If those hire arrangements are going to be in place beyond two years, they will need to be registered on the PPS Register. However, you should not wait until the two years has actually passed before you register your interest. We recommend registering before that time,” James said.

“Although most of our members remain unaffected (with hires not exceeding two years) we are working on an exemption for all hires, regardless of timeframe, because we believe the PPSA, which is essentially a law about securities and financing arrangements, should never have applied to the hire industry in the first place.

“The Association has continued its lobbying efforts on both sides of politics, as well as consultation with the major banks and the Attorney General’s department. We will be back in touch with the powers that be in Canberra for a concerted push to have the hire industry exempted from the PPSA.”

All legal questions regarding the PPSA can be directed to the HRIA’s specialist advisors, lawyers Oliver Shtein and Karen Wong at Bartier Perry: www.bartier.com.au

Further details on the two year period plus the consequences of failing to register your security interest under a PPS lease are set out in the quick reference and more detailed guidance notes produced by the HRIA on its website.

Visit: www.hireandrental.com.au/resources/ppsa-and-the-hire-and-rental-industry