The Federal Government has consolidated 70 different property registers into just one repository to simplify the monitoring of personal-property securities.
When people use a piece of their property as security against a loan, the property can be registered in a number of databases, including the ASIC Register of Company Charges, the State Registers of Encumbered Vehicles and Vehicle Securities Registers, and various other Bills of Sale, stock mortgage and crop lien registers.
Now the government has decided to cull these different repositories of data, and instead have just one national record of property that has been used as security for a loan. This will make it easier for consumers and businesses to buy used property without worrying that that piece of property has a security interest over it.
"The new national register will let you check that the used goods you are buying, like a car, boat or machinery — almost anything except real estate — doesn't have a security interest over it," Attorney-General Nicola Roxon said.
"Nobody wants to risk repossession. This new register makes it easy and affordable to access national information for peace of mind before you purchase."
The migration of over 4.7 million records from existing registers was progressing well, according to the attorney-general's office, with most of the records now transferred to the new register, and updates to those records to follow until shortly before 30 January, when the register will be open for business.
"The simplification of all these different registers will help make secured financing more accessible, and reduce transaction costs, making lenders more willing to accept different kinds of personal property as security for loans."
Businesses and individuals that hold security interests will have up to two years to register their security.