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Are you ready for the PPSA?
New legislation called the Personal Property Securities Act (“PPSA”) came into effect recently. It will dramatically alter the way we deal with personal property and the way in which security over personal property can be protected.
“Personal property” is any property (except real estate and fixtures to land) such as machinery and equipment, motor vehicles, book debts, stock, trademarks and patents etc.
The PPSA will regulate any “security interest” in personal property. If you do not protect your rights you risk losing your interests in that property.
For example you could lose:
- priority to another creditor; or
- title to your property if it is left in the possession of someone else (eg. if they sell it or if they go into liquidation etc ).
How does the PPSA affect you?
If you answer yes to any of the questions below, you should contact us to discuss how the PPSA may affect you and what steps you should take to protect your interests.
- Do you own personal property that could be in someone else’s possession for longer than 90 days ?
- Do you consign goods to other people to sell ?
- Do you manufacture and sell goods ?
- Do your conditions of sale state that you retain ownership until you are paid (i.e.
retention of title clause) - Have you granted “fixed and floating” charges or have they been granted to you ?
- Do you include charging clauses in your standard documents to give you security for an obligation ?
Registration
A single national online register of Personal Property Securities interests called the PPS Register (“PPSR”) has been established.
It is essential to register your security interests in order to obtain priority. By registering your security interest you can prevent another person taking ownership of your goods.
Any delay in registering your security interest or inaccuracy in the registration could be disastrous. New security interests created must be registered quickly and in some cases may be registered before the transaction is completed.
Questions?
If you have any questions about this blog post, do not hesitate to contact McLaughlin & Associate Lawyers via call or email.
Alternatively, you may visit our office in Springwood.
In recent months there has been an increase in activity by the ATO against businesses who are behind in the lodgement of their Business Activity Statements (BAS) and Returns. This recent crackdown means that many companies and their Directors face the possibility of prosecution or fines if they do not comply with their statutory obligations.
Consequences for not lodging Activity Statements and Returns
If you are late in lodging your Returns or Activity Statements you will incur penalties and be charged a daily interest rate currently 9.59% on any unpaid monies.
Once a company has received an ATO Compliance Notice and still fails to lodge their returns, they could face the following repercussions:-
• An audit and face further investigation from the ATO
• The ATO may estimate their net assessable amount or taxable income and the tax they owe without further warning
• A business or individual could be referred for prosecution without further warning
• If prosecuted and convicted, an individual could be fined up to $8,500.00 or imprisoned for up to 12 months, for a company the maximum fine is $42,500.00.
Advice to clients
You should :-
• Ensure all outstanding BAS and PAYG returns are lodged as soon as possible
• Pay all PAYG superannuation charge amounts within the relevant time frames
• Keep all BAS and PAYG returns up to date and lodged within 3 months of the due date
If a BAS return is lodged or a PAYG is not paid, the ATO may issue a Director Penalty Notice. At the expiry of the 21 day notice period, personal liability can apply. Director’s personal liability for a company’s unpaid PAYG will be avoided if a company enters into voluntary administration or has a liquidator appointed before the expiry of the Director Penalty Notice. If unpaid PAYG is not recorded within 3 months of the due date the Director will automatically be personally liable for any unpaid amounts even if the company is placed in voluntary administration or liquidation after this date.
If you have any overdue paid BAS and/or PAYG returns and/or overdue PAYG superannuation charge payments contact us immediately to discuss your options.
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