The PPS Register is frustrating for small businesses like Scotties Forklift Hire.

The Personal Property Securities Act (PPSA), which came into effect on 30 January 2012, has changed the way security over personal property can be protected.

Under the new Act, businesses can no longer rely solely on retaining title to their goods to reclaim them if they supply to customers who become insolvent or bankrupt - they need to register on the PPS Register. The register is the central part of PPS reform and changes the way secured finance operates in Australia.

It is a single point-of-contact register for consumers, businesses and the finance industry who can search it when they need to know whether certain personal property has a security interest registered against it, according to experts.

The PPS Register will be used in many situations including:

* finance companies that provide loans on the basis that they receive a security interest in an item of personal property to register their interest in the property on the PPS Register;

* business operators who sell personal property on credit, consignment, or on a retention of title arrangement to register their interest in the property on the PPS Register, and;

* consumers who are about to purchase personal property, such as valuable second-hand goods, to search the register before buying to make sure that the property is free of a security interest.


However, using the Register is not simple, according to small business owner Graham Scott of Scotties Forklift Hire.

He tells Forkliftaction.com News that the new process is time-consuming and expensive.

"It's a nightmare for small business," he says.

The Hire and Rental Industry Association has also expressed concern over the new regulations.

According to the association, the Act has unintentionally taken away the security of ownership (title) from the owners of rental assets which are often hired out under casually structured agreements for unspecified periods, and at the end of the hire period, the hire assets are returned to the hire company so the cycle can begin again.

It says the PPSA includes this type of lease under its 'indefinite hire' definition, and requires registration of the equipment at the pre-hire stage.

Currently, if these "indefinite hires" are not registered prior to delivery, they cannot achieve Purchase Money Security Interest (PMSI) coverage, and are therefore subject to the risk of being seized by the liquidator should the company which leased the equipment go insolvent.

Do you have experiences with the Australian Personal Property Securities Act (PPSA)?