Tag: insolvency

Delay to the start of the Personal Property Securities (PPS) Register

The new national Personal Property Security (PPS) Register was planned to start in October 2011. The Attorney-General’s Department (AGD) are leading the implementation of this new service. AGD have advised that, due to system issues, the start of the PPS Register is now likely to occur in early 2012. Once it starts, registration of security interests against company assets will need to be lodged on the PPS Register. The PPS Register will be an online service and accessible to search and register security interests 24 hours a day, seven days a week.

Maintenance of the register

The PPS Register will be administered by the Insolvency and Trustee Service Australia (ITSA). The PPS Register is the cornerstone of a new Commonwealth law, the Personal Property Securities Act 2009 (Cth) (PPS Act) and will replace numerous existing asset registers of security interests, including state and territory registers of encumbered
vehicles and vehicle securities and Australian Government registers including the Australian Register of Company Charges, the Australian Register of Ships (mortgages only) and the Fisheries Register.The Attorney-General’s Department has responsibility for the PPS Act, finalising the legislative arrangements, implementing the new national PPS Register and assisting industry with the transition to the new system.

The Registrar of Personal Property Securities is a statutory position created by the PPS Act. David Bergman has been appointed by the Attorney-General as the first PPS Registrar. The PPS Registrar will be responsible for the ongoing maintenance of the new PPS Register after the commencement date and his office will be established within ITSA.

What will be included on the PPS Register?

Security interests in personal property to be listed on the PPS Register will include assets that may be used to secure a loan. Personal property is any property other than land or
buildings. It includes physical goods such as works of art, furniture, jewellery, cars, boats, farm machinery, business equipment, crops and livestock. It also includes intangible property such as rights under a contract and intellectual property.

Who is affected?

The new PPS Register is part of a reform that will affect the way businesses and consumers deal with secured finance in Australia. Business owners and consumers may be affected by
changes to personal property security laws as:

  • buyers of properties that may be subject to a security interest
  • business or consumer borrowers
  • providers of credit, or
  • investors who are contemplating buying into a business.

The PPS Register will also help business owners manage credit risk, check whether property planned for purchase is encumbered and search and register assets used to secure a loan.

For more information about PPS reform visit www.ppsr.gov.au

DIRECTOR PENALTY NOTICES TO INCLUDE UNPAID SUPERANNUATION

In the recent 2011 Federal Budget, the Government made its intentions clear in dealing with “phoenix activities” by Directors.

The term “phoenix activities” is commonly used to describe arrangements whereby a company incurs, but does not pay, various liabilities whilst carrying on business activities.

The amendments proposed are to extend the “Director Penalty Notice” provisions in the Taxation Administration Act 1953 (which currently apply in the main to unremitted PAYG deductions) to include unpaid superannuation guarantee amounts, a change which may result in Directors becoming personally liable for unpaid amounts of this type.

If the legislation is amended in accordance with the budget announcement, Directors may become personally liable for unpaid superannuation amounts merely because of an inability of the company to pay rather than any activity which might be considered to be fraudulent. This should be sufficient encouragement for Directors to ensure that arrangements are in place for the timely payment of superannuation guarantee obligations.

Director penalty notices – part 2

This is the second of a series of videos prepared by Insolvency Experts
Director penalty notices are notices that the Australian Taxation Office may send to directors of a company that has unpaid PAYG Withholding. The notice serves to make the directors personally liable for this debt of the company.
If the company makes payments to the ATO after receipt of a director penalty notice, but subsequently goes into liquidation, the personal liability of the directors may be revived. This video explains that trap.

Insolvency Experts have no connection with Thomson Hall. Apart from finding their newsletters and and videos quite useful, we know nothing of the quality of their work and offer no opinion on whether you should use them in preference to other insolvency practitioners.