Just as everyone has gotten their heads around the Personal Property Securities Act 2009 (Act) and implemented the necessary policies and procedures, the Act is now being reviewed by the Australian Government to assess its operation and effect on businesses with particular attention being paid to how the Act has impacted small businesses.
An interim report is due by 31 July 2014 with recommendations on priority actions for the Government (focusing on issues raised in relation to small businesses). The final report is due on 30 January 2015 which is expected to include recommendations to improve and simplify the Act.
The Government has released terms of reference in relation to what the review is to cover which include for example:
- the effects of the Act on Australian business (particularly small businesses);
- whether there are any opportunities for minimising regulatory and administrative burdens on businesses and consumers; and
- whether the regime imposed by the Act and Personal Property Securities Register can be simplified.
The regime imposed by the Act was an ambitious, albeit necessary, reform undertaken by the Australian Government as it sought to implement a national regime for secured finance using personal property and is one which has taken businesses and their advisors time and resources to restructure the way in which interests in personal property are secured.
Any legislative review which focuses on simplifying systems and processes for businesses is always welcome by us here at Sladen Legal.
Watch this space as we keep you updated on the outcomes of the review.
If you have any legal questions around commercial contracts you are wanting answered, contact us today.