Jan 2017 2 Minutes
Protecting Your Business From A “Time Bomb”
A real “time bomb” from businesses is undoubtedly the Personal Property Securities Act (PPSA) and the associated Personal Property Securities Register (PPSR). Businesses have lost assets through ignorance of the law. A wide range of business activities have been affected, including:
- the owner of $60M worth of electrical generating equipment
- motor vehicles and trailers
- cleaning equipment and products
- assets that have been hired
- machinery owned by one company and hired to another company within the same group
- cabinet maker caught by the preferential payment demand by liquidator and also for not registering assets in someone else’s premises
- considerable losses have been incurred by hiring and renting businesses
- significant loss in excess of $400,000 to a business hirer due to the mix-up of the terminology “grantor” or “grantee”
These are just a small snapshot of some of the problems that have affected very large international businesses operating in Australia, as well as small/medium enterprises.
Whilst it’s voluntary to make registrations on the PPSR, failure to do so can be very costly indeed and, in some instances, can lead to business failure.
If you would like to have discussions with us relative to the implementation of an appropriate system for your business and ongoing reviews of the effectiveness of your internal system, please don’t hesitate to contact us.