Personal property is property other than land or
PPS reform and the fishing
buildings. It includes physical goods such as
industry watercraft, trailers, machinery, trucks, household
items and furniture, electrical goods, jewellery,
cars, crops, as well as intangible property (for
example, SFRs and rights under a contract).
REGISTRATION OF STATUTORY FISHING RIGHTS
WHAT IS A SECURITY INTEREST?
From early 2012, when personal property securities (PPS)
reform is expected to commence, the Australian Fisheries Generally, a secured creditor takes a security
Management Authority (AFMA) will no longer be registering interest to enforce its rights against particular
third party interests in Statutory Fishing Rights (SFRs). items of collateral in case the debtor defaults on
Under the reforms introduced by the Personal Property the obligation. If the debtor is declared bankrupt,
Securities Act 2009 (Cth), a third party security interest in a a secured creditor takes precedence over an
SFR will be known as a security interest in personal unsecured creditor in the distribution of the
property. property of the debtor who is declared bankrupt.
Instead of notifying AFMA of the third party interest in a SFR Under the PPS Act, a creditor would be
- after PPS registration commencement - you may register considered to be a secured creditor if they had
the security interest in personal property on the PPS met certain requirements, which will generally
Register. Third party interests already registered with AFMA include registering their security interest on the
will be automatically transferred to the new national online PPS Register.
PPS Register before PPS Register commencement.
WHAT DOES PPS REFORM MEAN FOR ME?
If you have a third party security interest in a state or territory
fishing licence you should seek professional advice about Upon commencement, the PPS Register will be
that because state and territory fishing licences are not part the authoritative record of registered security
of PPS reform. interests in all types of personal property,
PPS REFORM Registering an interest in personal property is a
key way to ensure priority of the interest. Priority,
In 2009, the Commonwealth Parliament passed the PPS as used in the PPS Act, refers to the order of
Act. precedence for determining which creditor has
the right to be paid first in the case of the default
The PPS Act sets out rules relating to the priority and
or bankruptcy of the debtor.
enforcement of security interests in personal property and
creates a new national PPS Register on which security RETENTION OF TITLE
interests in personal property can be recorded.
Sometimes property is sold or leased on the
PPS reform will allow SFRs to be pledged as security for basis that the purchaser takes the property but
loans which in turn, should make loans easier to acquire, legal ownership, or title to the property, remains
facilitate expansion of fishing businesses and help to with the seller until the financial arrangement is
address the concerns of the finance industry in taking concluded.
security in these licenses.
Under the PPS Act these types of arrangements
WHAT IS PERSONAL PROPERTY? create a security interest in the property sold or
leased. As a result, a seller’s (or lessor’s) rights in the
property may be at risk if the security interest is not
registered on the PPS Register. Terms of supply
agreements and leases may need to be reviewed by
WHAT WILL IT COST?
business owners or their business advisors to determine
whether they are in accord with the PPS Act. Each search of the PPS Register which shows no
security interest will provide protection under the
BUYING PERSONAL PROPERTY
PPS Act. You will be able to print a search
Importantly, the PPS Act provides in certain circumstances certificate for each search result at no additional
that a buyer of property will take it free of any security cost. All searches are subject to a fee (expected to
interest; that is, it is unencumbered. For example, where be less than $4.00).
the property is purchased for personal, domestic or
The current ‘peace of mind’, fee free - yes/no -
household purposes and its market value is $5000 or less.
enquiry service provided by some existing
In regard to motor vehicles and watercraft which must be encumbrance registers is not available under the
registered by serial number, a failure to register by the PPS Register.
relevant serial number may result in a purchaser taking the
PPS REGISTER CREDIT ACCOUNT
property free of any security interests in that property. In this
instance the PPS Register will operate in a similar way to If you wish to apply for a credit account to use the
state and territory based vehicle security interest registers, PPS Register, the form is now available on the
such as REVS. PPS website. While you can also pre-pay or pay
as you go, if you are a regular user, you may find it
HOW WILL THE PPS REGISTER AFFECT ME?
useful to establish a credit account. Please submit
In addition to the Commonwealth Fishing Register, the PPS your completed form early to ensure you can use
Register will replace the Commonwealth Shipping Register, your credit account from the ‘go live’ date of the
the ASIC Register of Company Charges and most state and register.
territory registers of security interests in personal property,
PROFESSIONAL ADVICE RECOMMENDED
including registers of interests in motor vehicles, such as the
VSR in Victoria or REVS in NSW. PPS reform may affect you and your business in a
number of different ways. Seeking professional
The PPS Register should be searched to find out about
advice in relation to the specific issues affecting
existing security interests to ensure that if buying or selling
your business is recommended.
personal property such as a SFR or watercraft that there is
clear title. You can view a video about PPS reform on the
PPS website: www.ppsr.gov.au
SEARCHING THE PPS REGISTER
When the PPS Register commences, you will be able to
access it online at www.ppsr.gov.au or by calling the August 2011
contact centre. The contact centre telephone number is
1300 007 777 and will be available during business hours.
For SFRs you will need to search by grantor details.
WHAT IS A GRANTOR?
A grantor is an individual or organisation who grants a
security interest over personal property to a secured party.
This includes using your personal property as security for a
loan, such as a secured car loan. If you lease equipment or
acquire supplies on retention of title basis, this may affect