After 15 months, the Federal Government has finally passed the Personal Property Securities Amendment (Deregulatory Measures) Bill 2014, which means significant changes for the equipment hire industry.
The Bill changes the requirement to register leases of serial-numbered goods (eg. motor vehicles, heavy equipment) from 90 days to 12 months in order to protect those assets. The 12 month timeframe is now the same for all goods (serial numbered or not) and means that all short-term hires of equipment will no longer need to be registered on the Personal Property Securities Register to be protected - provided the terms of hire agreement are drafted correctly to ensure the hirer cannot unilaterally extend the hire.
The date for the commencement of this change has not yet been announced, but the latest date on which the changes can occur is 25 December 2015. It is also important to note that the changes do not have retrospective effect, which means businesses must maintain all existing registration processes until these changes take effect.
If you require advice regarding whether your hire documentation sufficiently protects you, please contact our Commercial + Property Team to obtain further advice.