Latest PPSA amendment commences
Further to our recent email alert, the Federal Government has swiftly passed and adopted the Personal Property Securities Amendment (PPS Leases) Bill 2017, which means further significant changes for the equipment hire industry, following the initial amendments passed in 2015.
The Bill changes the requirement to register leases of equipment from 12 months to two years in order to protect those assets. Further, open ended leases will no longer need to be registered unless and until they run for a period of more than two years.
These changes took effect from 20 May 2017, which means they will apply to any hires entered into on or after this date. It is also important to note that the changes do not have retrospective effect, which means businesses must maintain all existing registration processes for hires which commenced prior to 20 May 2017.
This is welcome news for equipment hire businesses, as the changes will significantly reduce the administrative burden that originally came from the introduction of the PPSA and the requirement to register short-term hires.
If you require further advice about how the changes will impact your lease, please contact our Commercial + Property team.