Personal Property Securities Register
CorporateLegalCompliance16/04/2021 12:00:00 AM

Bankruptcy & Insolvency - The Personal Property Securities Register

The Personal Property Securities Register (PPSR) is an official government register. It is a public noticeboard of registered security interests in personal property.

This article explores how the PPSR operates, the reasons for registering an interest on the PPSR and the benefits of PPSR registration in protecting business interests.

What is the PPSR?

The PPSR is an official government register of security interests over personal property. Personal property can include goods, vehicles, intellectual property (such as copyright, trademarks, patents and design rights), bank accounts, private commercial licences, assigned rights, shares, bonds and other financial property. It excludes land, buildings and fixtures attached to the land.

The PPSR commenced on 30 January 2012, pursuant to the Personal Properties Securities Act 2009 (Cth). It replaced many state-based registers, such as the ASIC Register of Company Charges, REVS and other vehicle registers, to form one national register.

The PPSR is managed by the Registrar of Personal Property Securities. The Registrar sits under the Australian Financial Security Authority (AFSA). AFSA also manages bankruptcy applications. Part of the Registrar’s job is to determine what interests can be registered on the PPSR.

Registering interests on the PPSR

Registering an interest on the PPSR lets the world at large know that the registered party claims to have a security interest over the particular property in question.

A security interest is commonly created when a secured party (such as a lender) takes an interest in the personal property of a grantor (such as a borrower), as security for a loan or other obligation. The security interest means that the secured party can take the personal property (known as collateral) if the secured obligation is not met. For example, if a loan is not repaid. Security interests only arise when there is agreement between the grantor and the secured party.

Other parties can then search the PPSR to determine what security interests (if any) exist over particular items of personal property. A search of the PPSR is especially prudent when buying property or extending credit to another party. If a party is facing bankruptcy/insolvency, typically one of the first tasks is to search the PPSR for any registered interests against that party’s personal property. This will allow the trustee-in-bankruptcy to determine the order of priority in dealing with secured creditors.

The benefits of PPSR registration in protecting business interests

Registering interests on the PPSR is optional. However, if a party has a security interest it is recommended to register that interest on the PPSR in order to protect their priority position as a secured party. Otherwise they risk losing their goods, their interest in the goods, or being left out-of-pocket, in particular if the grantor becomes unable to honour their secured obligation eg to repay an outstanding debt.

The centralised nature of the PPSR allows all businesses to search the register and readily assess risk in offering finance or extending credit against any personal property, other than land.

Because it provides a risk management tool, the PPSR is instrumental in increasing business confidence, driving growth through capital raising and supporting business innovation.

You can read more about how the PPSR can protect your business interests here.

Sources: PPSR, accessed 15 April 2021.

The PPSR and your business, accessed 15 April 2021.

AFSA, accessed 15 April 2021.

CCH Pinpoint ®, Register of charges for proprietary companies, 3 April 2020, accessed 15 April 2021.

CCH Pinpoint ®, Introduction to securities for credit, 2 March 2021, accessed 15 April 2021.

CCH Pinpoint ®, Charges, 28 March 2021, accessed 15 April 2021.

CCH Pinpoint ®, Secured creditor’s claim in bankruptcy, 17 May 2019, accessed 15 April 2021.

CCH Pinpoint ®, Vesting of PPSA security interests if not continuously perfected: s 588FK–588FO, 10 August 2020, accessed 15 April 2021.