Published on 01 Jul 12
by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
On 30 January 2012, the Personal Property Securities Act 2009 (Cth) (PPS) commenced operation in Australia. The PPS introduces into Australian law new concepts which replace and, in some ways, revolutionise long-established laws as they relate to giving and taking security over personal property. Familiar concepts such as chattel mortgages, liens, charges and hire purchase arrangements are now subsumed within the generic concept of security interest, and are subject to a single, nationwide registration system which replaces the former state and territory-based registration systems. The PPS has no direct application to taxation in Australia (with perhaps an exception being mortgage duty laws, soon to be repealed). However, the PPS will be extremely relevant to those tax practitioners who give structuring or asset protection advice.
This article explains what property is affected by the PPS, how security is affected, and the consequences of failing to take account of the PPS.