Attorney-General, Robert McClelland has welcomed the passage of legislation to create a national system of personal property securities (PPS) law.
The Personal Property Securities Bill 2009 creates a single legal framework for lending using personal property as security. Personal property is any form of property other than land.
“Passage of the PPS Bill today is a major achievement in reforming Australia’s personal property securities system,” Mr McClelland said.
“Australia currently has a maze of PPS legislation and security registers.
“This has impeded the ability of individuals and businesses, particularly small-to-medium size businesses, to use their personal property in raising capital.
“Given the current uncertainty in global financial markets, improving the capacity of businesses to borrow is crucial.”
PPS reforms will play an important part in increasing the availability of credit to more businesses, while consumers will have greater certainty in acquiring unencumbered goods.
The new legal framework will be supported by a single, national online register of personal property security interests.
“These reforms, particularly the establishment of a single online register, will give consumers greater confidence that the property they have purchased is not at risk of being later repossessed because it has money owing on it,” Mr McClelland said.
The reforms rely on a constitutional referral of power from the states. To date, New South Wales, Queensland, Victoria and South Australia have passed referral legislation. The other states are expected to refer powers in the near future.
“The Government will now concentrate on working with the businesses and consumers to the implement the new PPS system by May 2011.”
Further information about PPS reform is available at www.ag.gov.au/pps.
Media Contact: Daniel Gleeson (McClelland) 0409 562 425