Guide
How to Register a Security Interest on the PPSR
Security agreements, PMSI timing, the 20 business day rule, and the errors that void a registration.
In short
PPSR registration perfects a security interest you already hold under a written security agreement. Registration costs from $6, but the value is entirely in getting the grantor identifier, collateral class and timing right — including PMSI deadlines and the 20 business day rule for companies under s588FL of the Corporations Act.
Most businesses that supply goods on credit, lease equipment or lend against assets are entitled to security they never register. When the customer collapses, they discover the difference between a secured creditor and an unsecured one: usually cents in the dollar.
Registration Perfects, It Does Not Create
Under the Personal Property Securities Act 2009 (Cth), your security interest comes from the agreement, not the register. So before you register you need a written security agreement, or terms of trade that:
- Grant a security interest in identified collateral (or all present and after-acquired property)
- Retain title until payment in full, where goods are supplied on credit
- Are actually accepted by the customer — signed, or accepted through a documented process before supply begins
Terms printed on the back of an invoice sent after delivery are the classic failure. The agreement must bind the customer before the goods move.
What to Register Against
| Grantor type | Correct identifier | Common fatal error |
|---|---|---|
| Company | ACN | Registering against the trading name |
| Trustee company | Trust ABN (and trustee ACN) | Registering against the trustee only |
| Sole trader | ABN | Using the individual's name instead |
| Individual | Exact licence name + DOB | A nickname or missing middle name |
| Vehicle / serial goods | VIN or serial number | Collateral class only, no serial number |
A registration containing a seriously misleading defect in the grantor identifier is ineffective. Take the identifier from the ASIC or ABN register at the time of registration, not from an email signature.
PMSI Timing: Register Before You Deliver
A purchase money security interest arises where you supply or finance the very goods you take security over — retention of title stock, leased plant, hire purchase equipment. A valid PMSI beats an earlier general security holder, such as the customer's bank, but only if registered in time:
- Inventory — register before the grantor obtains possession.
- Other collateral — within 15 business days of the grantor obtaining possession.
- The registration must also be flagged as a PMSI. An unticked box costs you the super-priority.
The 20 Business Day Trap (s588FL)
Where the grantor is a company, s588FL of the Corporations Act 2001 (Cth) can vest an unregistered or late-registered security interest in the company itself if the company enters administration or liquidation. In practical terms, register within 20 business days of the security agreement being made. Miss it and an otherwise perfect security can simply disappear at the moment you need it.
Registration Mechanics
- Create a secured party group on ppsr.gov.au (once), and keep the access details somewhere other than one departed employee's inbox.
- Select the collateral class — the choice between "all present and after-acquired property", "other goods", "motor vehicle" or "account" drives what you are actually secured over.
- Decide the term. Seven years or less is cheapest; longer and indefinite terms cost more. Diarise the expiry, because lapsed registrations lose priority.
- Tick PMSI where applicable, and add subordinate detail only where it helps.
- Give the verification statement to the grantor and file it with the security agreement.
Maintenance Nobody Does
- Amend when the customer restructures, changes ACN or novates the agreement.
- Discharge promptly when paid — failing to do so is a compliance risk and a source of friction on the customer's next sale.
- Renew before expiry; a re-registration after expiry ranks from the new date.
- Audit annually: a spreadsheet of every registration against live customer accounts takes an hour and routinely finds gaps.
Related Reading
See how to run a PPSR search, what a general security agreement does, PPSR search VIC and terms of trade drafting.
Frequently Asked Questions
What is a PPSR registration?
A registration on the Personal Property Securities Register that gives public notice of a security interest you hold in someone else's personal property — leased plant, financed equipment, goods supplied on retention of title, or all present and after-acquired property under a general security agreement.
How much does it cost to register on the PPSR?
From $6 for a registration of up to seven years, with higher fees for longer or indefinite terms. The fee is trivial compared with the exposure of being an unsecured creditor in an insolvency.
Do I need a security agreement before I register?
Yes. Registration does not create a security interest — it perfects one. You need a written security agreement (or terms of trade with an effective retention of title and grant of security clause) signed or accepted by the grantor, and it must actually cover the collateral you register against.
What is a PMSI and why does timing matter?
A purchase money security interest arises where you finance or supply the very goods you take security over. A properly registered PMSI outranks an earlier general security holder, but only if you register in time: before the grantor takes possession for inventory, and within 15 business days of possession for other collateral.
What is the 20 business day rule under section 588FL?
Where the grantor is a company, a security interest can vest in the company — and be lost entirely — if it is not registered within 20 business days of the security agreement being made, and the company later enters administration or liquidation. It is one of the most common and most expensive mistakes we see.
What details do I have to get right?
The grantor identifier above all: ACN for a company, ABN for a business, and the exact name and date of birth from a driver licence for an individual. A registration against a wrong identifier is ineffective, and a serial-numbered asset such as a vehicle must also be registered against its VIN.
Next Step
If you supply goods on credit and cannot say when your last PPSR registration was made, that is the answer. Book a 15-minute call — we will review your terms of trade and registration process on a fixed fee.
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