TressCox Lawyers has warned quarrying operators that in order to avoid additional risk and ?costly business ramifications?, businesses need to plan how to properly register their property.
The Federal Attorney-General?s Department is expected to announce a time frame to implement new rules around equipment that businesses own, but isn?t in their possession.
?The PPSR will increase the risk of doing business in Australia, particularly for creditors and suppliers of goods and services who fail to understand the consequences of not registering their dealings,? said TressCox Partner Derek Hilliard. ?Essentially, if you own property that isn?t in your possession ? for example, sub-contracted equipment situated off-site ? it is at risk of being lost if it?s not registered.?
The firm believes that while most larger Australian organisations have factored in the changed and assessed which properties need to be registered, it?s concerned that smaller organisations may be caught out.
?The old adage ‘possession is nine tenths of the law? rings true in the sense that your property may effectively be deemed to belong to someone else if it?s not registered to you or your business,? said Hilliard.
TressCox is recommending that small businesses:
? Review the PPSR website (www.ppsr.gov.au) and information to gauge how the business is affected.
? Form a company action plan.
? Review trading terms with customers and suppliers.
? Ensure adequate time to complete registration and due diligence processes.
? Consult a legal professional if in doubt.