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Articles from HIRE EQUIPMENT (74 Articles)

Under changes to red tape, a motor vehicle such as a loader will be redefined as anything capable of travelling at speeds of at least 10km/h.
Under changes to red tape, a motor vehicle such as a loader will be redefined as anything capable of travelling at speeds of at least 10km/h.

Red tape repeal for hire industry

The Federal Government held its first red tape repeal day last week to simplify 8000 regulations, including a national register for plant and equipment. 
The government has vowed to cut $1 billion worth of regulations deemed excessive. One of these regulations was the Personal Property and Securities Act, first introduced by the Rudd Government in 2009.

The Act came into practice in 2012 and the transition period to the registry didn’t end until late January this year. The registry was intended to help businesses claim their assets if a company using them went into administration. However, for rental businesses, this has actually resulted in extra compliance burdens. 

A failure to add an item to the registry can result in these assets becoming available to all unsecured creditors in the event of a business going into administration. 

Parliamentary secretary to the Prime Minister Josh Frydenberg, who is driving the deregulation push, said the Personal Property and Securities Act was having a detrimental impact on hire equipment firms and costing the industry millions of dollars each year in registration fees and compliance costs. 

Geoff Giddings, general manager of hire firm Skyreach, said the requirement to place equipment hires of “serial-numbered goods”, mostly motor vehicles, on the national personal property register was costing his firm $9000 a month and tied up two full-time staff. 

Redefining motor vehicles
Under the repeal, hire agreements of more than 90 days will no longer be required to be put on the register. A single rule will apply to leases of more than a year, which will be put on the register.

The regulation will also change the definition of what constitutes a motor vehicle. The chief executive of the Hire and Rental Industry Association, Phil Newbury, said “anything more powerful than a hairdryer” was classified as a motor vehicle under the existing rules. For example, vibrating plates used in roadworks, scissor lifts, concrete mixers and generators attached to trailers were all considered motor vehicles. 

The definition will be changed to define a motor vehicle as anything capable of travelling at a speed of at least 10km/h that also has motors with total power greater than 200 watts. 

Ian Rodgers, who owns R&R hire at Caboolture, north of Brisbane, said the regulation had been designed to protect hire operators but had the “ludicrous” effect of creating a loophole that could allow liquidators to sell the equipment if the client firm that had borrowed it collapsed. 

The Federal Government is encouraging businesses to nominate regulations for repeal and to lodge comments and submissions at the official Cutting Red Tape website.

Sources: SmartCompany, The Australian

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Friday, 20 September, 2019 5:48pm
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