The Attorney-General, Robert McClelland,has introduced the Personal Property Securities Bill 2009 into Parliament. Its object is to create a comprehensive national system of personal property securities (PPS) law.

PPS law governs how personal property may be used as security for a loan.

When passed this Bill will replace more than 70 different pieces of Commonwealth, State and Territory law.

The new law will be supported by a referral of power from the States and a national online register of PPS interests.

Last week, New South Wales became the first State to refer their power in this area to the Commonwealth.

A copy of the text of the Bill attached to the NSW referral can be downloaded here.

The Senate Standing Committee on Legal and Constitutional Affairs has released its report on the exposure draft of the Personal Property Securities Bill.

The Committee has made 11 recommendations including that the commencement date for the scheme be extended by at least 12 months to May 2011 and that it be reviewed after 3 years.

The draft Personal
Property Securities Bill 2008 has been referred to the Senate Standing Committee on Legal
and Constitutional Affairs.

The Committee has invited written submissions by 10 December 2008 and will report in February 2009.

A discussion paper has been released on the regulations proposed to be made under the Personal Property Securities Bill.

The Bill would establish a national framework for the regulation and registration of security interests in personal property. This national framework would benefit businesses, individuals and consumers by delivering more certain, consistent, less complex and cheaper arrangements for the financing of personal property.

The Bill would also establish a single national online register of personal property securities (the PPS Register). The new registration system would help prospective purchasers and lenders to determine whether personal property may be subject to a security interest and would facilitate the resolution of priority disputes. The PPS Register would replace the more than 40 existing registers currently administered by Commonwealth, State and Territory agencies.

Submissions on the Bill were invited by 15 August 2008. In light of the public consultation on the Bill it is likely that there will be some refinement to various aspects of the Bill.

The development of the PPS Register is progressing on schedule for a commencement date in May 2010.

The deadline for submissions is 17 October 2008.

There is a different system in each State of Australia for taking and registering security interests (including leases,
hire purchase and retention of title arrangements) over most types of
tangible and intangible personal property  (including livestock, crops,
intellectual property and receivables) ranging from motor vehicles and boats to liquor licences, water rights, taxis and gaming machines.

Bur it now appears that a consensus exists for a unified national law and registry where substance will take precedence over form.

The Standing Committee of Attorneys-General has released an Options Paper (Pdf) for consultation.