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MAY 2012 | HIRE
AND
RENTAL
NEWS
| 29
INDUSTRY IN FOCUS
The Personal Property Security Act finally
went ‘live’ on January 30, 2012.
According to Phil Newby, Chief Executive
Officer of the HRIA: “In the past 6-9 months
it has become very apparent our industry
has been dragged into conforming with
the new rules. It will affect the way we do
business.
“Much work is going on behind the
scenes but to assist members come to terms
with the new legislation and conform to its
requirements, we have provided a detailed,
easy to read guidance note on our web-
page plus a suggested Master
Agreement clause structure. The HRIA
suggested amending hire agreements by
turning them into Master Agreements.
The HRIA provided proposed amendments
to be included in a Standard Hire Contract
Terms & Conditions along with a template
to turn it into a Master Agreement,” Phil
said.
“The web page also includes a very
relevant Frequently Asked Questions (FAQ)
section.
“The main issue facing all members is, all
PPS Act and Register - an association perspective
rentals go out on indefinite hire (Is this
different from casual hire? Yet to be
clarified). We might say the hire is for a
week, but if the hire goes over that
expected period, the hire company must
continue to charge for the hire equipment.
“While for the hire industry, this is normal
business practice, according to the new
legislation, this is not the case. Indefinite
hire means the item must be registered
BEFORE going on hire, plus, the legislation
also includes master agreement options
which can get very expensive,” Phil said.
“Members might ask, why should we go
to all the bother of registering equipment
on the register? The answer is simply,
because you could lose what is yours,
legally, according to this Act.
“Bartier Perry has been appointed by the
HRIA to be our industry association’s legal
experts and are working on solutions. They
are also available to individual members for
specific advice, if required, but a fee will
of course apply. However, their knowledge
of the problems facing our industry is very
current and relevant.
“To get to the PPSA notes, FAQs and
more go the association web page
(www.ewpa.com.au or www.hireandrental.
com.au) - Member Services - Login - click on
‘Contracts & Insurance’.
“Fleet owners are particularly affected
by the PPS Act and its definition of vehicles.
The original intent was to require plant
items such as EWPs, mini diggers etc, to be
registered under the 365 day ruling, but
the actual Act wording has now brought
them into the 90 day bracket. This is still
irrelevant as indefinite hires overrule this:
it’s back to registering before hiring or the
Master Agreement.”
All information provided by the HRIA
has been prepared to assist members in
preparation for the introduction of the
PPSA. The information provided is by way
of sample only and it is not legal advice.
The HRIA advises members seek their own
legal advice on the specific wording which
may apply to their own business. The HRIA
disclaims all liability for any loss resulting
from reliance on this information.
HR