Personal Property Securities Act – Amendments
The Personal Properties Securities Amendment (Deregulation Measures) Bill 2014 was introduced into Federal Parliament on 21 March 2014. If passed, it will amend the definition of a PPS lease. The amendment removes the provision in the PPSA which deems a lease of goods with a serial number (including certain aircraft assets, motor vehicles and watercraft) to be a PPS lease where the term of the lease is 90 days or more.
Leases of goods without a serial number are only deemed to be PPS leases if the term of the lease exceeds one year.
The removal of the provision in relation to serially numbered goods will mean that the same test will apply to determine whether a lease or bailment of goods is a PPS lease, regardless of whether the goods bear a serial number or not. The change will only apply to leases entered into after commencement of the amendment.
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