September 2015 Edition

In this edition:

Welcome

New ATO penalty regime for SMSFs

2013/2014 bankruptcy numbers by suburb

PPSA update on short-term leases

Investing in volatile markets

PPSA update on short-term leases

Commencement date to be confirmed

                                   Under the Personal Property Securities Act 2009 (PPSA) owners of assets are required to register a lease provided in respect of their interests. The legislation previously required any lease of a serial numbered good such as; motor vehicles, caravans, forklifts, and watercraft with a term greater than 90 days to be registered.

This also includes leases that are able to be renewed beyond the 90 days. These measures intend to protect the good's owner in the event of the lessee becoming subject to an insolvency appointment. It is expected that the PPSA will be amended so that registration will only be required for leases of goods with a term of greater than 12 months or a lease capable of being renewed beyond a 12 month term.

This amendment is intended to protect businesses that hire goods where it is generally not expected that the hire will be for a period greater than 12 months. It also reduces the administration costs for owners of assets hired for a short term period associated with the registration process.

The commencement date for these amendments have not been announced but will only apply to leases entered into after the commencement of the legislation. Please contact our office if you require any assistance with your PPSA registrations.