As we recently discussed, the personal property securities register (PPSR) is one method by which companies can protect themselves when clients enter corporate insolvency. The Australian Financial Security Authority (AFSA) recently released the latest statistics on this register, which give a sound indication of the popularity of the PPSR.
A surge in activity
In the June quarter of 2016, the AFSA reported there were 557,063 new registrations on the PPSR, with 356,820 removed from the system. On top of this, there were 1.02 million amendments to existing registrations indicating many people are still getting the registration process wrong.
There wasn't just a net increase in the number of items registered under the PPSA – more people are accessing the database to check up on assets too. Throughout the three months to June 2016, AFSA reports that 2,178,875 searches were undertaken to find security interests on the PPSR. That's 7.6 per cent more than the same time a year ago, and an incredible 10 per cent more than in the previous quarter.
More activity suggests that more people are discovering the benefits and protections that the PPSR can provide when insolvency strikes clients.
What are the most popular items on the PPSR?
The most popular item to register on the PPSR is a vehicle.
It seems that far and away the most popular item to register on the PPSR is a vehicle. AFSA statistics indicate that some 4.48 million items on the register are motor vehicles, which makes up 49.6 per cent of all listed assets.
These come under commercial property, which is also the dominant asset class – making up 6.59 million registrations. The other most prominent types of registrations were as follows:
- Other goods,
- All present and after acquired property,
- Intangible property,
- Financial property and
As you can see, a wide range of assets can be given protection through registration on the PPSR. If you need to find out more about how this system works, get in touch with the team at Cactus Consulting. We are experienced, professional business and pre-insolvency specialists that can help you understand the PPSR registration requirements for your business.