The Personal Property Securities Register (PPSR) commenced in January 2012, with most participating businesses opting for a seven-year renewal. As such, legal firms across Australia will be kept busy as thousands of registrations are up for renewal in January 2019.
A PPSR registration cannot be renewed once it has lapsed, so it is critical to review and renew the registration of any applicable property within your client’s business before the upcoming deadline.
1. Start early
The average business has multiple assets which require registration. Several unique pieces of information are required for each item, creating a mammoth task with a fast approaching deadline! With renewals lapsing after the traditionally slow holiday period, it’s important for your firm to reach out to PPSR clients well in advance of the deadline.
2. Do your due diligence
Some of the most common errors made when registering property on the PPSR arise from incorrectly identifying an asset or other related pieces of information. A thorough due diligence process minimises these errors and has the added benefit of mitigating issues which could arise in future business audits. Don’t forget to critically review each registration type to ensure it correctly matches your clients’ assets.
3. Stay organised
Registering an item requires multiple documents from multiple sources. Small errors made when interpreting these documents can have big implications for a business. Maintaining a full and accurate file reduces the risk of making any errors or doubling up on work, which can prevent a timely PPSR application.
4. Avoid costly mistakes
Just one mistake in an application can render a registration ineffective. This not only wastes the time and money spent in making the application in the first place, but can open businesses up to a damages claim or penalties under the Personal Property Securities Act 2009 (PPSA).
5. Be thorough
A lot can happen in seven years, so it is possible that property which is low-risk now will be controversial by 2026. Pre-empt any future conflicting interests and register all eligible property, even those which seem trivial.
6. Review often
Details like customer information change rapidly and must remain correct for the PPSR to provide any protection. Set regular check-points with your clients to make sure you are equipped to correct any details which have changed, and simplify future registration.
Software can automate many aspects of the registration process, including due diligence, cloning registration details, and batch entries. Using software to streamline processing will increase workflow efficiency, and save you time and money.