The PPSA introduces new terminology and concepts into the laws relating to personal property securities. The PPSA also redefines some terminology and concepts which were used in pre-PPSA laws.

See Important terminology.

The PPSA sets out the rules relating to when a security interest will attach to personal property and how a secured party can perfect that interest. A security interest is only effective if it has attached to personal property. A security interest can be perfected by registration, possession and control. Only certain types of property can be perfected by control.

See Attachment and perfection of security interests.

The PPSA outlines general priority rules and specific rules regarding the priority of interests arising outside of the PPSA as well as the rules for enforcement. There are also rules applying to non-PPS property. Extinguishment rules apply where collateral is purchased or leased. The extinguishment rules under the PPSA deal with situations when a third party transferee can take free of a security interest.

See Priority and extinguishment rules.

The PPSA and the register established under it — the Personal Property Securities Register (PPSR) replace the numerous existing Commonwealth, state and territory laws and registers for company charges, bills of sale, ship mortgages, motor vehicle securities, crop liens, stock mortgages and most other securities affecting tangible and intangible personal property rights.

The PPSR is administered by the Australian Financial Security Authority.

See Personal Property Securities Register.