The Attorney General has released the interim report on the statutory review of the Personal Property Securities Act 2009 (the Act).
The purpose of the statutory review is to consider the operation and effects of the Act with a particular focus on the experience of small businesses and simplification.
The report makes it clear that more could be done to help small business. It recommends that the Australian Financial Security Authority (AFSA), in consultation with small business representatives (particularly those representing the interests of retention of title suppliers and the hiring industry) and their advisers, develop a targeted short term multi-facetted education and awareness raising campaign designed to:
- make affected small businesses more aware of the existence of the Act and that it can affect them; and
- provide more guidance on how small businesses can make effective registrations for their most common types of security interests.
The interim report also identifies areas of complexity of the Act:
- Unfamiliar terms, or terms used in unfamiliar ways,
- Uncertain reach of many concepts,
- Complex provisions including uncertainty in the interaction between different provisions,
- Complexity of the register: complexity in the registration process and complexity affecting searches.
The interim review also identifies suggested changes to the scope of the Act and other areas for reform.
The interim report foreshadows the release of 10 technical consultation papers covering issues for further consideration and feedback by stakeholders.
A final report will be delivered to the Government on 30 January 2015.
