On 1 March 2017 the Federal Government introduced the
Personal Property Securities Amendment (PPS Leases) Bill
2017 into parliament, which, if passed, will amend section 13
of the Personal Property Securities Act 2009 (Cth)
(PPSA) to:
- replace the current one year threshold for deeming a commercial
lease or bailment to be a PPS lease to two years, and
- remove the much criticised 'indefinite term' category
of PPS lease, unless the lessee or bailee has held the goods for
longer than two years with the lessor or bailor's consent.
A PPS lease is deemed to be a security interest under the PPSA
which means that a lessor or bailor whose arrangement falls within
section 13 of the PPSA must perfect it, usually by registration on
the Personal Property Securities Register (PPSR),
even if the arrangement is not designed to provide security. A
failure to do so can lead to the lessor or bailor losing their
rights to the goods should the lessee or bailee go into
