PPSA amendments to leases and motor vehicles

 

THE Federal Government is making amendments to the Personal Property Securities Act (PPSA) to help address anomalies over certain leases and what qualifies as a ‘motor vehicle’. 

The PPS Amendment (Deregulatory Measures) Bill 2014 was introduced to Parliament on March 19.

The bill will repeal section 13(1) (e) of the Personal Property Securities Act 2009 which deems leases of serial numbered goods of 90 days or more to be security interests for the purposes of the Act and make minor consequential amendments to the Act.

The Australian Government has also amended part of the definition of a motor vehicle in the PPS Regulations, to provide that one of the requirements is that the property is capable of travelling at speeds of at least 10km per hour and which has one or more motors with a total power greater than 200 watts. The regulations appear to have had some unintended consequences in this area.

The revised definition will take effect from July 1, 2014. The Personal Property Securities Amendment (Motor Vehicles) Regulation 2014 and the changes to the leases section is available at www.commlaw.gov.au

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