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ARTICLE · 05 AUGUST 2026

PPSA - Perfecting By Possession

Bartier Perry Solicitors
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Perfecting a security interest under the Personal Property Securities Act 2009 (Cth) (PPSA) is critical step for a secured party to ensure its security interest is not just enforceable against the grantor of the interest, but also against third parties. Perfection can occur by one of three ways: possession, control or registration on the PPS Register.

AustraliaCorporate/Commercial Law
Rebecca Hegarty
Rebecca Hegarty
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Perfecting a security interest under the Personal Property Securities Act 2009 (Cth) (PPSA) is critical step for a secured party to ensure its security interest is not just enforceable against the grantor of the interest, but also against third parties. Perfection can occur by one of three ways: possession, control or registration on the PPS Register. We are all familiar with registration on the PPS Register and the less common method of control only relates to certain types of collateral1. However, there is a third method that this article focuses on – perfection by possession.

What is perfection by possession?

Section 21(2) of the PPSA is very clear that perfection by possession of the secured property is, ‘other than as a result of seizure or repossession’. Case law provides guidance on what constitutes perfection by possession. In the case of Knauf Plasterboard Pty Ltd v Plasterboard West Pty Ltd (In Liquidation) (Receivers and Managers Appointed) [2017] FCA 866), Justice

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