AssetsPersonal Property Security RegisterPPSRSafeguardsmall businessSubcontractors

Are You Using the PPSR to Safeguard Your Assets?

Unfortunately many businesses, both small and large, still encounter significant financial costs because their businesses have not registered a customer, or the owner of a property at which the business had an asset situated, on the Personal Property Securities Register.

One area that is causing a lot of problems, particularly for subcontractors, is preferential payment claims received from liquidators of companies that were customers of the business.  In most cases, the subcontractor could have avoided the financial costs, if the subcontractor had registered their customer on the Personal Property Securities Register.

Non-registration on the PPSR can cause significant problems for other types of businesses.  There are a number of different issues that vary from business to business relating to the PPSR summarised as follows:

Retail Business:

  • supplying goods to business customers on credit
  • supplying goods on a consignment basis to another business
  • storing goods and equipment in someone else’s property
  • leasing of business premises (potential problems with fixtures, plant and equipment if the business remains in the premises when the lease ends)


  • supplying products to customers which are added to other products within their customer’s business (accession)
  • customer may be on-selling products before paying the tradesman for the products
  • preferential payments risk – this is a big problem for subcontractors if they have not lodged a registration (security interest) relative to the contract with the customer on the PPSR
  • tools, equipment, motor vehicles, portable buildings, formwork and scaffolding stored on a third-party site

Farmers/Primary Producers:

  • supplying goods which are mixed with products supplied by other farmers (co-mingled)
  • storing goods on someone else’s property e.g. grain in a grain silo owned by another business
  • supplying crops to a livestock owner to be fed to livestock

Farm Suppliers:

  • supply of goods for growing crops e.g. seeds, fertilisers, pest control
  • supplier products for feeding cattle
  • supplying consignment stock to retailers and other businesses

Thoroughbred Horses:

  • leasing of thoroughbred horses
  • thoroughbred horses stabled on someone else’s property
  • preferential payment claims relative to payments of fees


  • supply of stock to wholesalers and retailers
  • supply of products that are affixed to other products by the customer (accession)
  • preferential payment claims by the liquidator of a customer
  • storing property at someone else’s premises


  • supply of the stock to retailers without using a Retention of Title and Terms of Trade Agreements
  • supplying stock on a consignment basis
  • preferential payment claims by the liquidator of a customer

These are some of the items that should be examined to determine whether a registration should be made on the Personal Property Securities Register to protect the business’ assets.

If you would like to have a discussion about the implementation of a strategy, appropriate for your business, please do not hesitate to contact us.


An Important Message

While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents.  Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.