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Changes to the Personal Property Securities Act 2009– Single stage Regulation Impact Statement – Attorney-General’s Department

On 19 March 2014 the Prime Minister announced changes to the rules that relate to when a lease may need to be registered on the Personal Property Securities Register.  The changes will simplify the requirements for leases of less than 12 months. Business will no longer need to consider two timeframes: one for goods generally and one for serial numbered goods, such as motor vehicles. The changes will also minimise the need for businesses to consider whether to register leases that are for a term of less than 12 months. As noted in the Regulation Impact Statement (RIS), consultation suggests that business is finding that the current system for different lease terms and different goods is confusing and costly.  However, the RIS acknowledges that while fewer registrations would result in reduced costs for the businesses, businesses will no longer gain the benefits associated with registration. The proposal has been assessed as likely to have a relatively minor impact on the broader economy and has therefore been given a ‘D’ rating (on a scale of A to D) in relation to the level of analysis required. The changes are estimated to reduce regulatory costs by $11.2 million per year. The OBPR notes that, as no decision has been previously announced, an options-stage RIS was not required. A single-stage RIS was prepared and certified by the Attorney-General’s Department and has been assessed as adequate by the Office of Best Practice Regulation.