As anticipated after the Parliamentary review of the
Personal Property Securities Act 2009
(PPSA) completed earlier this year, and with the
aim of reducing the number of lease transactions that fall within
the scope of the PPSA, the Australian Parliament has recently
passed legislation amending the PPSA with respect to what is a PPSA
lease.
The amendment will mean that clause 13(1)(e) of the PPSA will be
repealed. At this stage, it is anticipated that the amendment will
come into effect on 1 October 2015, however this date is not yet
confirmed.
Clause 13(1)(e) of the PPSA currently provides that a lease of
serial numbered goods (for example motor vehicles) is a lease under
the PPSA if it is for a term of 90 days or more, whether that is
made up of a single set term, an initial term with options, or is
the period that the lessee actually retains possession of the
property.
