Hi there. The Personal Property Securities Register (PPSR) is a central online register that allows businesses and individuals to register a security interest over certain personal property, known as collateral. One type of security interest that may be registered is a purchase money security interest (PMSI). A PMSI may benefit the registering party by providing a ‘super-priority’ - which is a security interest that defeats all other, including earlier, created and registered security interests in the same collateral. However, certain registration requirements, including specific timeframes, must be complied with in order to for a super-priority to be secured by a PMSI.

An application to register a security interest on the PPSR must be in the approved form and contain particular information, including that of the parties involved and the property to be secured. When completing the registration online the process is the same as a general security interest, only with the additional step of indicating, when prompted, that it is a PMSI. For more information about the application process, you can visit the ‘Registrations’ page on the PPSR website (www.ppsr.gov.au).

Any registration of a security interest on the PPSR will attract fees. The fees generally depend on how long the security interest is to be registered. For example, registration for seven years or less costs $6.80. More information about fees is available on the PPSR website.

The PPSR does not require a separate registration to be made for each supply or lease of inventory that is to the same buyer or lessee. A single transaction can have the effect of covering subsequent security interests in property that is supplied at a later date. However, given that subsequent registrations may be for a different class of property, involve a different purchaser or may be for a different registration duration, it is important to pay close attention to your desired security arrangements each time an application for registration is made.

Suggested way forward

Registering a security interest, especially in situations of supplying inventory, is an important business practice subject to strict rules around the accuracy of the information that is provided. Speaking to a business lawyer will help you understand whether your security interest is registrable. They can also help draft the necessary legal documentation and complete the registration(s) for you. By pressing the “Consult a Lawyer” button, LawAdvisor can help you search for experienced lawyers and obtain fee proposals for their services. Costs for legal advice and representation will vary between providers based on experience and the scope of services.