Personal Property Securities Reform
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Media Release
8 May 2007
The Australian Government will provide $113.3 million over five years to harmonise Australia’s personal property security laws in one Commonwealth Act and develop a single national online register of personal property security interests.
“Personal property securities reform will reduce red-tape for businesses and lead to cheaper finance, more competition in the financial services sector and a reduction in legal disputes,” Attorney-General Philip Ruddock said today.
The States and Territories have given in-principle agreement to join the Commonwealth in personal property security reform, subject to further consideration of the financial arrangements for the national system.
Lenders and purchasers entering into transactions involving personal property (all property other than buildings or land) will be able to check cheaply and easily on the Internet whether there is an encumbrance in the property.
The laws regulating securities over personal property are currently contained in more than 70 pieces of State, Territory and Commonwealth legislation.
“The current situation is extremely unsatisfactory in a modern national economy where cross border transactions are an economic reality,” Mr Ruddock said.
“The Australian Government’s reforms will provide greater certainty to businesses.”
The measure will be offset by revenue of $62.9 million generated once the new national register is operational.
More information about personal property securities reform is available at www.ag.gov.au/pps
Media Contact: Steve Ingram (02) 6277 7300