Key PPSR learnings for credit managers from the AFSA ‘State of Personal Property Securities System’ report

The Australian Financial Security Authority (AFSA) recently released its ‘State of Personal Property Securities System’ Report for 2023-24. The report focuses on the current state of the PPSR, regulatory priorities, and future directions. The report underscores the PPSR's critical role in supporting Australia's $3.6 trillion credit system by enabling creditors to protect security interests and empowering informed decision making. The PPSR holds registrations with a potential economic value of $450 billion, which is approximately 20% of Australian GDP*. Access Intell has distilled the report into key learnings for credit managers. Read on to learn how the PPSR is performing, market trends, AFSA’s future focus, and the importance of registering.

PPSR statistics on registrations, searches, grantors and collateral classes

The report shared PPSR statistics for the 2023-24 period, compared to the previous year:

  • Searches: An increase of 7.9% in searches, to over 12.8 million
  • Current registrations: A 2.3% increase in current registrations, to 10.4 million
  • New registrations: A 7.9% increase in new registrations, to 2.2 million

Other statistics of note include:

  • Grantors: 'Construction', 'rental, hiring and real estate services' and 'transport, postal and warehousing' were the most common grantor industries
  • Discharges and amendments: 2 million discharges and 1.4 million amendments were made, suggesting a ‘healthy level of dynamic renewal’
  • Collateral classes: Motor vehicles (70.8%) and registration of other goods (21.2%) such as equipment and merchandise drove new registrations
  • Secured-party registrations: 68% of new registrations are for ‘financial and insurance services’ secured parties, with ‘wholesale trade’, ‘rental, hiring and real estate services’ and ‘manufacturing’ the other most common industries

‍

Market trends and PPSR implications

AFSA believes the increase in PPSR searches suggests a ‘growing public awareness of the financial and commercial risk protection that the PPSR offers’.

Most registrations (79%) represent commercial activity – businesses lending to businesses. With 70.8% of new registrations being comprised of motor vehicles, Access Intell believes there is still a significant portion of businesses not registering that should be. If you’re selling goods on credit, hiring equipment, or financing assets, PPSR may be right for your business.

‍

AFSA’s future focus and implications for PPSR

AFSA continues to focus on promoting PPSR compliance and enforcing the law against serious and deliberate misuse. It has allocated 20% of enforcement resources to ensuring the integrity of the PPSR as part of a proactive surveillance approach targeting improper registrations.

AFSA is scoping impacts and developing a transition and implementation plan for any changes to the PPSR from proposed legislative reforms. Access Intell is closely monitoring the PPS Act reforms.

‍

Are you registering on PPSR and are you registering correctly?

Registering an interest on the PPSR is the only way to obtain legal rights (and priority) to supplied goods. In the event of customer insolvency, secured creditors are first in line for payment. Cost is minimal and security usually lasts for seven years.

Access PPSR simplifies the complexity of registration through automation. Our pre-set profiles and built-in validation tools ensure security is correctly registered and therefore enforceable. Easy, effective and low-cost.

 

Source: Australian Financial Security Authority State of the Personal Property Securities System 2023–24

*Australian Bureau of Statistics (2024), Australian National Accounts: National Income, Expenditure and Product, ABS, accessed 21 January 2025.

Ready to Learn More?

Book a tailored demo with our team to learn how Access Intell can add value to your business.

Book a DemoFree Trial →