Personal Property Securities (Migration Time and Registration Commencement Time) Determination

Administered by Department of the Treasury

Legislation au F2011L02397 In force Legislative Instrument

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EXPLANATORY STATEMENT

Personal Property Securities (Migration Time and Registration Commencement Time) Determination

Summary

The Personal Property Securities (Migration Time and Registration Commencement Time) Determination (the determination) is made under section 306 of the Personal Property Securities Act 2009 (the Act) by the Attorney-General. 

The determination sets both the migration time and the registration commencement time.

Background

The Act provides that the Minister may determine the migration time and the registration commencement time.  Although the Act was given the Royal Assent on 14 December 2009, the registration commencement time effectively marks its actual commencement (sections 310 and 315).  For example, an application to register a financing statement in respect of a security interest may only be made at or after the registration commencement time.  The repeal or amendment of certain Acts, including the Corporations Act 2001 (Cth), is also contingent on the registration commencement time.

An exception to this arises in respect of the migration of certain interests in personal property from transitional registers, such as the ASIC Register of Company Charges, to the Personal Property Securities Register.  The migration time is the time at which this process will commence.  It must start at a time no less than 28 days before the day on which the registration commencement time occurs.

The determination of the migration time and registration commencement time was contingent on the delivery of a fully functioning Personal Property Securities Register.  The Register is the centrepiece of personal property securities reform.  In addition to the significant IT infrastructure that has been successfully developed to support the Register, a national contact centre and user support services have been developed with the Insolvency and Trustee Service Australia (which will assume ongoing responsibility for the operation of the PPS Register) in readiness for a commencement time of 30 January 2012.

Notes on Sections


Section 1 – Name of Determination

Section 1 provides for the citation of the Determination as the Personal Property Securities (Migration Time and Registration Commencement Time) Determination.

 

 

 

Section 2 – Commencement

Section 2 provides that the Determination commences on 21 November 2011.

 

Section 3 – Interpretation

This section provides that the definition of Act is the Personal Property Securities Act 2009.

 

Section 4 – Migration time

Section 4 specifies that the migration time is 21 November 2011.

 

Section 5 - Registration commencement time

Section 5 provides that the registration commencement time is 30 January 2012.

 

Consultation

Consultation with industry has been extensive involving the Department working closely with key stakeholders, including the banking and finance sector.  A trial of data migration and pre-load of certain transitional security interests was conducted in June and July 2011.  During the trial, all data from existing registers was migrated, with the exception of the ASIC Register of Company Charges, and all data from pre-load participants was loaded into the production environment for the PPS Register. The trial also confirmed the amount of time required for data migration and pre-load.  All transitional registers have advised that they are ready to commence data migration as scheduled.

Another key element to the consultation was the design and execution of user acceptance testing of the PPS IT system with the participation of stakeholders.  The participants included the Attorney-General’s Department, banks and other financial institutions, information brokers and the Insolvency and Trustee Service Australia.  Testing was successfully completed on 11 November 2011.  The Department also undertook an assessment of overall readiness for the commencement of PPS reform, including that of Government as well as industry and other stakeholders.  

Regulatory Impact Analysis

The Office of Best Practice Regulation has previously advised that the personal property securities reforms do not require a Regulatory Impact Statement because the reforms do not involve compulsion and it will be a commercial decision whether businesses register.  It is not designed to impose any additional compliance costs on business or individuals or have any adverse impacts on competition.

Legislative instrument

The determination is made under subsection 306(5) of the Act.  The determination is a legislative instrument, however, section 42 (Disallowance of legislative instruments) of the Legislative Instruments Act 2003 does not apply to the determination.

Overview

The Personal Property Securities (Migration Time and Registration Commencement Time) Determination, made in 2011 under the Personal Property Securities Act 2009, was introduced to set the specific times for the migration of personal property interests from transitional registers to the new Personal Property Securities Register, and for the commencement of registration activities. Enacted by the Attorney-General, the determination was necessary to ensure a smooth transition and effective implementation of the new system, which is central to the personal property securities reform. The policy objective was to facilitate a timely and orderly migration of data from existing registers, such as the ASIC Register of Company Charges, to the new register, while also ensuring that the system was fully operational and ready for public use. Extensive consultation with industry stakeholders, including the banking and finance sectors, was conducted to confirm readiness and address any potential issues before the commencement times were set.

Scope and Application

The Personal Property Securities (Migration Time and Registration Commencement Commencement Time) Determination is a legislative instrument made under section 306 of the Personal Property Securities Act 2009, and it specifies the migration time and the registration commencement time for the implementation of the new personal property securities regime in Australia. The determination was issued by the Attorney-General and is effective as of 21 November 2011. The migration time, as specified in the determination, is the point at which the migration of personal property interests from existing registers to the new Personal Property Securities Register will commence, and it has been set for 21 November 2011. The registration commencement time is the date from which registrations of new personal property interests can be made under the new regime, and it is set for 30 January 2012. This determination is essential for the successful transition to the new regime, and it was made possible by extensive consultations with key stakeholders and a trial run of data migration and pre-load of certain transitional security interests.

Key Provisions

The Personal Property Securities (Migration Time and Registration Commencement Commencement Time) Determination (the determination) outlines the key dates for the commencement of personal property securities reform in Australia. Section 2 of the determination specifies that it commences on 21 November 2011. The migration time, which marks the beginning of the process of transferring existing security interests to the new Personal Property Securities Register, is set out in Section 4 as 21 November 2011. The registration commencement time, when parties can start registering new security interests, is set for 30 January 2012 according to Section 5. The determination imposes several obligations on the parties and entities involved in the reform. Firstly, transitional registers must be ready to commence data migration by the migration time. This means that they need to ensure all existing security interests are correctly transferred to the new Personal Property Securities Register. Secondly, the Insolvency and Trustee Service Australia, which will manage the operation of the new Register, must be prepared to handle the influx of data and provide necessary support services. Thirdly, financial institutions and other stakeholders must be ready to begin registering new security interests from the registration commencement time. Failure to comply with the requirements of the determination can result in various consequences. While the determination does not explicitly outline specific offences or penalties, breaches of the Personal Property Securities Act 2009, under which this determination is made, can lead to civil and criminal penalties. For instance, knowingly making a false statement in a financing statement can result in a civil penalty of up to 2,100 penalty units (as of 2021, this equates to approximately AUD 399,300). Criminal penalties can also apply, including fines of up to 12,000 penalty units (approximately AUD 2,200,000) and imprisonment for up to five years for serious offences such as fraud or dishonest conduct. The determination’s primary role is to set the operational timelines for the commencement of the new regime, and compliance with these timelines is crucial for a smooth transition to the new system.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.