PPSR (Personal Property Securities Register)

The national register where a business can record a security interest over goods or money it is owed, such as materials supplied on credit.

Definition

The national register where a business can record a security interest over goods or money it is owed, such as materials supplied on credit. Registering a security interest, including a purchase money security interest over supplied goods, can lift a supplier above the unsecured creditors if a customer fails. The rules and timing are specific, so suppliers should get advice on registering correctly for how they trade.

Why it matters

For suppliers who extend trade credit, the PPSR is one of the most useful protections available and one of the most under-used. Without a registered security interest, a supplier owed money by a failed builder is an unsecured creditor at the back of the queue. With a correctly registered interest over the goods supplied, the supplier can move ahead of the unsecured creditors and improve what it recovers. The catch is that the rules and the timing are strict, and a registration done wrong or late may not hold.

How it works in practice

A supplier registers a security interest over the goods it supplies on credit, or money it is owed, on the national PPSR. A purchase money security interest over the specific goods supplied can give priority over other secured creditors where the requirements are met.

If the customer fails, a valid registration can lift the supplier above the unsecured creditors for the value of the secured goods. The requirements around how and when to register are specific, so suppliers should get advice on setting it up correctly for the way they trade.

Common misconceptions

Registering once covers everything forever

Not necessarily. Registrations have to be done correctly for the goods and the trading relationship, and timing rules apply. Get advice on how to register for the way you trade.

The PPSR guarantees a supplier gets paid

It improves your position in the queue if a customer fails. It does not guarantee full recovery, and it does not help if the registration is defective or out of time.

This entry provides general information only and is not legal advice. PPSR registration rules and timing are strict. Get advice from a lawyer or PPSR specialist on registering correctly for the way you trade.