2010 - 2011

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

SENATE

PERSONAL PROPERTY SECURITIES AMENDMENT (REGISTRATION COMMENCEMENT) BILL 2011

ADDENDUM TO THE

EXPLANATORY MEMORANDUM

(Circulated by the authority of the Attorney-General,

the Honourable Robert McClelland MP)

After paragraph 10 of the Outline, insert the following three paragraphs:

The Attorney-General’s Department has worked very closely with key stakeholders, including the banks and other financial institutions in testing the PPS IT system.  This close working relationship with key stakeholders will continue through to commencement of PPS reform. 

The Bill will assist the Government and industry in managing the risk that would arise if the PPS legislation otherwise commenced automatically on 1 February 2012, but without a fully functioning PPS Register.  When the PPS Act starts operating, it has the effect of ceasing the operation of the Commonwealth, State and Territory registers that will be replaced by the PPS Register.  It is not possible to wind back this effect without substantial amendment to PPS legislation in almost every jurisdiction. 

Should any critical issues arise in the final weeks before the registration commencement time in the Act, the passage of the Bill will enable the Attorney-General to further determine the registration commencement time to be a time later than 1 February 2012.