The new Personal Property Security Act (PPSA) started on 30 January 2012.
Personal property is all types of property other than land, fixtures, water rights and some statutory licences. For example cars, boats, equipment, intellectual property, shares, and debts are all personal property.
The Personal Property Securities Register has been set up to ensure your interest in personal property is registered where they are being held by another party. This may apply to your SMSF where the trustees:
- lease personal property to another;
- place goods with another on consignment for sale; and
- have goods in storage.
This may typically apply where the super fund holds valuables such as works of art or antiques.
Not registering your property could risk losing the asset or possibly breaching SMSF legislation and paying higher tax liabilities, particularly where the other party to the arrangement is a related entity.
Click here for more information on PPSA.