PPSA – Are you in the loop?
The Personal Property Securities regime was introduced in January, 2012 and bought with it a number of complications and headaches for small businesses including cane farmers.
Previously, any hire or lease of personal property (for example machinery such as harvesters, tractors, hall-out trucks etc) that were out of your
possession for a term greater than one (1) year, needed to be registered on the Personal Property Securities Register (PPSR). If they weren’t registered
on the PPSR and the person who had possession of the equipment went into liquidation or was declared a bankrupt, the person who legally owned the
equipment could lose their rights to claim back the machinery and it could be sold off to help clear the debts of the liquidated company or the
The recent amendments to the PPSR regime that came into effect on 20 May, 2017 have extended the lease or hire term from one (1) year to two (2) years.
This means for leases and hires of plant and equipment entered into after 20 May, 2017, the requirement is only to register on the PPSR if the
hire exceeds two (2) years or is for an indefinite period of time that will run for greater than two (2) years.
- Do you have share farm arrangements in place for either all or part of your farm and/or allow others to farm on your land?
- Have you dropped off excess farming equipment to a local equipment dealer for sale?
- Are you transferring or storing your crops someplace but wanting to keep ownership of them despite them not being stored on your land?
We strongly encourage anyone who is involved in any of the following scenarios to speak to the PPSA team at McKays to obtain legal advice specific
to your situation.