The protection of our clients assets is important to the team at PFA so we wanted to advise you of recent changes made to the Personal Properties Securities Act (2009) which could have a big impact on the ownership protection of your assets.
“Proof of ownership is no longer sufficient to protect your assets”
On the 1st July 2014 the PPSA changed the definition of motor vehicles which created a new segment of “other goods”, as well as changing the way that lease agreements are treated.
Unfortunately in a number of recent court cases, owners of plant, equipment and vehicles have lost ownership of goods when they were leased or hired to a company who subsequently went into administration or liquidation.
The courts have ruled in favour of the receivers in cases where no security interest or charge was registered over the goods by the owner.
The change in the definition of the goods is dependent upon the power and speed output, however some examples that fall under this definition include elevating work platforms, some asphalt pavers, dozers, pipelayers and motorised shovels.
Given the wide definition of “other goods” it can be expected that the above examples are only a small sample of the equipment that can be affected.
Similarly the leasing or hiring of vehicles to third parties also requires a PPSR charge to be registered to protect the ownership of the goods.
We recommend that all of our clients revisit the protection of their assets and seek professional advice in relation to their specific circumstances. Additional details regarding PPSA can be obtained from either www.ppsr.gov.au or by contacting your Pacific Finance broker.