The Personal Property Securities Register (PPSR) is an Australian Government register established under the Personal Property Securities Act 2009 (Cth). It records security interests in personal property — meaning moveable assets other than land.
What the PPSR does
Registering on the PPSR gives public notice of your security interest in assets. In the context of debt recovery, it is most commonly used by suppliers who sell goods on credit under a retention of title (RoT) clause — a contract term stating that title to the goods does not pass to the buyer until the full purchase price is paid.
Without a PPSR registration, a retention of title clause may be ineffective in an insolvency. If your customer goes into liquidation or voluntary administration and you have not registered, the goods you supplied (and have not been paid for) may be treated as the customer's property — meaning the liquidator can sell them and distribute the proceeds to all creditors, not just to you.
The cost of not registering
An unregistered RoT supplier in an insolvency is typically an unsecured creditor. Unsecured creditors in Australian liquidations frequently recover nothing, or only cents in the dollar. A registered supplier, by contrast, may be able to recover the goods or have priority over proceeds from their sale.
Who should register on the PPSR?
- Suppliers who sell goods on credit terms with a retention of title clause
- Equipment financiers and lease providers
- Businesses who loan or hire equipment to others
- Any creditor with a security interest in a specific asset
Searching the PPSR
The PPSR is also a public search tool. Before extending significant credit to a new customer, you can search the register to see whether other creditors have registered security interests over that customer's assets. This can inform your risk assessment.
Registering
Registration is done at ppsr.gov.au. Registration fees are modest — typically a few dollars per registration — and the process can be completed online. Given what is at stake in an insolvency, registration is an inexpensive and important protection.
If you are unsure whether your retention of title clause is effective or how to register, seek advice from a commercial solicitor.
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