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Personal Property Securities Act Presents Businesses A ‘Time Bomb’

Dice with the text manage your risk.

Millions of dollars have already been lost by businesses that paid for an asset but had not registered that asset on the PPSR - Personal Property Securities Register. While it is voluntary to register, businesses need to be alert to the requirements.

The PPSA legislation can affect virtually any type of business.

What is the Problem?

Two recent cases in Townsville have identified the problems for subcontractors:

  • A liquidator is seeking repayment of almost $100,000 from one Townsville supplier
  • A subcontractor was issued with the demand for more than $30,000 from the liquidator of a failed builder.

Problems business may experience:-


  • Supplying stock to retailers, Supplying consignment stock
  • Selling plant and equipment items to customers
  • Leasing of motor vehicles
  • Supplying of stock which may be mixed with other products (co-mingled)
  • Storing of stock or plant and equipment at someone else’s premises

Ingredients Supplier

  • Supplying ingredients to a manufacturer who utilises the ingredients in the manufacture of product
  • Supplying ingredients to a manufacturer who has on sold the new product to a customer

Paintings, Works of Art

  • Supply of artwork/sculptures to a business
  • Supply of artwork/sculptures on a consignment basis


  • Supplying stock to wholesalers and retailers
  • Supply of products that are affixed to other products by the customer (accession)
  • Supply of products to customers
  • Supply of stock and products to customers who have on sold the items before manufacturer is paid
  • Storing of property at someone else’s premises

Primary Producers

  • Livestock on agistment
  • Assets-plant, equipment, vehicles etc. or stock stored on someone else’s property
  • Sale of livestock
  • Hiring, leasing livestock e.g. for breeding purposes
  • Supply of livestock or stock on a consignment basis
  • Lease of premises for storage of equipment
  • Supplying goods to customers on credit
  • Supplying goods which are mixed with products supplied by other farmers (co-mingled)
  • Supply of goods for growing crops e.g. seeds, fertilisers, pest control

Sub-Contractors, Tradies, Principal​ Contractors

  • Tools, equipment, vehicles, portable buildings, formwork and scaffolding stored in a third-party workplace
  • Preferential payment risks- this is a particular risk for Tradies and Principal Contractors if they have not lodged the security interest with the Personal Property Securities Register
  • Renting/leasing of products to customers
  • Supplying goods to customers
  • Supplying products to customers which are added to other products within the customer's business

Retail Businesses

  • Supplying goods to customers
  • Supplying goods on a consignment basis to another business
  • Storing goods and equipment in someone else’s warehouse, shop, business premises
  • Leasing of business premises (potential problems with plant and equipment if the tenant remains in the premises when the lease concludes)

At Coutts Redington we believe that it is important that we offer to undertake a due diligence review as part of a risk management strategy to assist you to protect your assets under this legislation.

Personal Property Securities Register assets concept.

PPSR - Personal Property Securities Register Information Sessions

Seminar for Retailers, Wholesalers, Manufacturers and all other Businesses:

Tuesday 17 April 2018
4.00pm for 4.30pm to 5.30pm
Aitkenvale Office- 278 Ross River Road
Click Here to Register