Due to significant issues with the IT system identified during user acceptance testing the planned commencement of the PPSR on 31 October 2011 has been delayed.
Further testing is now expected to conclude mid November, and if at that time there is sufficient confidence in the system, the Attorney-General will decide upon the commencement of the new PPS Act.
The PPS Act provides that the registration commencement date is 1 February 2012, unless an earlier date is determined by the Attorney-General.
It is expected that PPSR will commence in January 2012, with the exact date to be determined then, if the legislation is not amended in the current sittings of Federal Parliament.
What does this mean to you?
The delay in commencement gives you more time to prepare for the implementation of the new provisions. However, we recommend you don't leave it too long. Hunt & Hunt can assist you in the following ways:
- Training of staff - we can come to your business to present on the topic or provide advice by telephone or email as and when questions arise
- Internal due diligence to locate existing securities and other arrangements such as sales on retention of title and consignment which will be deemed securities under the PPSR
- Setting up your secured party groups and registration of interests
- Reviewing your various supply and credit agreements to ensure you take advantage where possible of opting out provisions, so that you have the right to register your security in the PPSR and that you can pass on any costs of registration of your securities.
We will provide you with further updates and developments as they occur and look forward to working with you to ensure a smooth transition to the PPSR for your business.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.