Personal Property Securities Amendment (Deregulatory Measures) Commencement Proclamation 2015

Overview

The Personal Property Securities Amendment (Deregulatory Measures) Act 2015 was enacted to address the regulatory compliance burden faced by small businesses engaged in the hire and rental industry. This Act, which received Royal Assent on 25 June 2015, was introduced by the Australian Parliament to streamline regulatory requirements for certain leasing transactions. Specifically, the Act reduces the scope of the Personal Property Securities Act 2009 by amending the definition of ‘PPS leases’ to exclude leases of serial numbered goods for fixed terms between 90 days and one year. This amendment alleviates the need for businesses frequently using such leases to record these transactions on the Personal Property Securities Register. The Personal Property Securities Amendment (Deregulatory Measures) Commencement Proclamation 2015 was subsequently issued to set 1 October 2015 as the commencement date for the changes outlined in Schedule 1 of the Act. The primary policy objective of this legislation is to ease the administrative burden on small businesses involved in leasing serial numbered goods.

Scope and Application

The Personal Property Securities Amendment (Deregulatory Measures) Act 2015 applies to entities engaged in leasing transactions involving serial numbered goods, specifically those that would otherwise fall under the definition of 'PPS leases' in the Personal Property Securities Act 2009. This legislation primarily targets small businesses within the hire and rental industry, providing them with a reduced regulatory compliance burden by amending the scope of the PPS Act. The Act modifies the conditions under which leases are considered 'PPS leases', thereby exempting certain transactions from the requirement of registration on the Personal Property Securities Register. The geographic and jurisdictional reach of this Act is confined to the Commonwealth of Australia, affecting all states and territories uniformly. The Act came into effect on 25 June 2015, with the exception of Schedule 1, which was set to commence on 1 October 2015 as per the Personal Property Securities Amendment (Deregulatory Measures) Commencement Proclamation 2015. The Proclamation was issued to formally fix the commencement date for Schedule 1, which repeals the deeming provision in paragraph 13(1)(e) of the PPS Act. This repeal means that leases of serial numbered goods, such as motor vehicles and aircraft, for terms ranging from 90 days to one year will no longer need to be recorded on the Personal Property Securities Register, provided they are fixed-term leases. The application of the Act may be further extended or restricted through subordinate instruments as necessary.

Key Provisions

The Personal Property Securities Amendment (Deregulatory Measures) Act 2015, specifically section 2(1), sets the commencement date for Schedule 1 through a Proclamation, which was fixed as 1 October 2015. The Act, which received Royal Assent on 25 June 2015, includes provisions designed to ease the regulatory burden on small businesses involved in the hire and rental industry. Schedule 1 of the Act repeals paragraph 13(1)(e) of the Personal Property Securities Act 2009, altering the scope of what constitutes a 'PPS lease'. This change exempts certain leasing transactions from the requirement to be recorded on the Personal Property Securities Register, specifically those involving serial numbered goods like motor vehicles, aircraft, and watercraft, leased for fixed terms between 90 days and one year. Entities governed by the Act, particularly those involved in the hire and rental of serial numbered goods, must now comply with the new legislative framework that excludes certain leases from being considered 'PPS leases'. This means that businesses will no longer need to record these specific leasing transactions on the Personal Property Securities Register, provided the leases meet the specified duration criteria. The obligation to adhere to these new provisions is explicit and applies to all relevant transactions from the date Schedule 1 commenced on 1 October 2015. Failure to comply with the new provisions set out in the Act could lead to unintended regulatory oversight, as certain transactions that were previously required to be registered are now exempt. However, the Act does not explicitly outline specific offences, penalties, or consequences for non-compliance within its text. Given that the Act's focus is on deregulatory measures, it is likely that the primary consequence of non-compliance would be the reversion to previous registration requirements, rather than specific fines or criminal penalties. Nonetheless, businesses must ensure they are fully aware of and comply with the updated legislative requirements to avoid any potential legal repercussions.