The Personal Property Securities Register (PPSR) is a national online register on which security interests over personal property (that is, property other than land) can be recorded. It replaced a patchwork of state registers and common-law rules when the Personal Property Securities Act 2009 (Cth) came into force in 2012.
For trade creditors — businesses that supply goods on credit — the PPSR is one of the most important and most under-used tools available. A correctly registered interest can transform an unsecured claim into a secured one.
What is the PPSR?
The PPSR is a public register that records security interests in personal property — goods, equipment, inventory, receivables, intellectual property and other assets that are not real property (land). When a creditor registers a security interest on the PPSR, it publicly signals that the creditor has a claim over specified property belonging to (or held by) the debtor.
Registration affects priority — between competing creditors, the earlier registered interest generally takes priority — and it affects what happens in an insolvency. A registered security interest holder may be able to recover the secured property or its value ahead of unsecured creditors and, in some cases, ahead of a liquidator.
Why trade creditors need it
If you supply goods on credit — products, materials, equipment — and a customer becomes insolvent before paying you, a liquidator will generally treat those goods as the company's assets and realise them for the benefit of all creditors. Unless you have a registered security interest, you are likely to be an unsecured creditor with no priority over the goods you supplied.
The PPSR changes this. A correctly registered security interest — particularly one supporting a retention of title clause — can give you the right to recover the specific goods or their value ahead of unsecured creditors. In practice, this often means the difference between a full or partial recovery and none at all.
Retention of title clauses
A retention of title (ROT) clause — sometimes called a Romalpa clause — is a term in your contract or terms of trade that says ownership of the goods does not pass to the buyer until they are paid for. Under the pre-PPSR regime, ROT clauses gave suppliers meaningful protection. Under the PPSR, a ROT clause is only effective if it is also registered on the PPSR as a Purchase Money Security Interest (PMSI).
A PMSI registration must be done correctly and within strict timeframes — before the goods are delivered for inventory, or within 20 business days of delivery for other goods (to retain super-priority). Missing these timeframes can cost you your priority position.
How to register
Registration is done online at ppsr.gov.au. You will need:
- Your details as the secured party (name, ABN or ACN).
- The grantor's details (the debtor's full legal name, ACN for a company, or date of birth and driver licence number for an individual).
- A description of the collateral (the specific goods, or a general description such as "all present and after-acquired property").
- The correct collateral class and, for a PMSI, the correct registration timing.
The accuracy of the registration matters enormously. An error in the grantor's name or collateral description can render the registration ineffective. If you are registering for the first time or for significant amounts, consider getting advice from a PPSR specialist.
Searching the register
The PPSR is a public register. Before extending credit to a new customer, search the PPSR to see what security interests are already registered against them. A customer who is heavily encumbered — with equipment under a finance lease, inventory subject to existing PMSI registrations, or a "all assets" charge in favour of a bank — may present a higher credit risk than their trading history suggests.
Searching is straightforward and inexpensive. It should be a standard step in your credit vetting process.
If a debtor becomes insolvent
If a customer enters insolvency and you have a registered security interest, contact the liquidator or administrator immediately. Identify yourself as a secured creditor, provide evidence of the registration, and assert your claim over the secured property. Act quickly — liquidators manage many claims and the early-mover advantage is real.
If you do not have a registration, you will generally be treated as an unsecured creditor. This is the situation the PPSR is designed to prevent.
This guide is general information only. It does not constitute legal or financial advice. For advice specific to your situation, consult a qualified professional.