The Attorney General's Department has recently released proposed fees for using the Personal Property Securities Register.
The Personal Property Securities ("PPS") regime establishes a national registration regime for security interests in personal property. Amongst other impacts, businesses which ordinarily rely on ‘retention of title’ arrangements to protect their interest in goods supplied will need to register their security interests on the register to protect their interests.
The Consultation Draft for the Cost Recovery Arrangements proposes two separate fee structures for use of the register depending on whether online system or contact centre is used.
The proposed fees for registering a financing statement (the method of registration) are as follows:
| Register Financing Statement |
Proposed Fee
(Online) |
Proposed Fee
(Contact Centre) |
For an undefined duration
|
$130.00 |
$144.80 |
| For a duration of 7 years or less |
$7.40 |
$22.20 |
| For a duration of more than 7 years and less than 25 years |
$37.00 |
$51.80 |
For collateral (personal property) which is consumer property or described by serial number, the registration must be for a period of 7 years or less. For other types of property, the duration may be for an undefined period of time, or for a period of more than 7 years and less than 25 years.
It should be noted that one financing statement may cover multiple collateral personal but the financing statement may be registered against only one grantor (person granting the security interest).
The proposed fee for a search of the register is $3.70 using the online system and $11.60 when using the contact centre. Other fees relating to the register are disclosed in the Consultation Draft which may be accessed here.
The proposed fees will directly impact on the cost of doing business in 2011. The Consultation Draft is open for submissions until 24 September 2010.
Please contact Peter North on (03) 9623 1035 or petern@lewisholdway.com.au to discuss how the Personal Property Securities regime may affect your business in advance of the introduction of the regime in May 2011.