PPSR - Significant January 2019 issues
January 2019 marks 7 years since the inception of the Personal Property Securities Register (PPSR) and 7 years of registrations on the PPSR. It also marks a raft of potential issues for PPSR managers.
As we have mentioned in our previous PPSR articles, January 2019 is a significant time for security registrations, as the most common PPSR registration duration was 7 years when PPSR first commenced in 2012.
PPSR registration managers have contacted us recently to seek information regarding other paramount issues concerning the January 2019 PPSR milestone.
On review, we are of the opinion that prior to January 2019, PPSR registration managers should:
- Review Registrations
To Review registrations visit the AFSA Website at https://www.afsa.gov.au/ and access the ‘Registrations due to expire report’. The registrations due to expire report provides you with a list of registrations that are due to expire in a specified time period. This will allow you to monitor PPSR registrations ahead of their expiry date and you can accordingly review if your registrations require extension, amendment or discharge.
- Extend Registrations
A PPSR registration can be renewed before the expiry date if this is in your interest and you need a registration to stay enforceable. Once a registration is expired, it cannot be renewed. Therefore, if you are in doubt as to whether you need an extension, it is advised that you extend your registration regardless. Depending on the particulars of your PPSR registration, there may be a small price to pay when extending, however consider this as insurance and protection.
If you fail to renew your PPSR registration and it lapses, a lapsed registration will mean that your PPSR certificate is invalid. Ultimately you will not have an enforceable or prioritised security. Therefore, reviewing your registrations is key.
- Amend Registrations
This is relevant when seeking to change details regarding your PPSR registration. An example of registration attributes that can be amended, among others, includes the ‘change of end date’ and ‘adding or removing grantors.
Examples of registration attributes, among others, that cannot be amended includes ‘grantor details’ (however, you can add a new grantor), ‘any serial number in a serial number field’ (i.e. a VIN number) and the ‘collateral type or class’
For a full list of registration attributes that can and cannot be amended please click here.
- Discharge Registrations
If you have reviewed your PPSR registration and believe that you no longer need it, you can discharge the registration for free. Only one registration can be discharged at a time and you should be diligent when discharging to ensure that you discharge the correct registration
To discharge your registration, please log into your PPSR account.
- Enter your PPSR registration number and associated token;
- Check the registration details are correct; and
- Click discharge.
As always, we advise that you keep adequate reminders in your calendar of PPSR expiry dates. This will ensure that you are on top of your PPSR registrations. The PPSR exists to protect you and your assets, to provide you with cheap and highly effective insurance and to give you priority as a creditor. Use it and use it properly, otherwise risk losing assets when insolvency intervenes.
For more information, contact Macks Advisory on 08 8231 3323 or email info@macksadvisory.com.au
