Here is a timely reminder of the new Australian Legislation and how it is impacting on Business. If you have been paid by a company that goes into liquidation & you are an unsecured Creditor your RISK is 6 months of paid invoices, eg. $5000 paid monthly = $30,000 of Preferential Payment Claw back.
To protect your business and ensure your PPSR registrations are valid you need up to date Terms of Trade. Do not have an outcome like WHITE-v- SPIERS EARTHWORKS PTY LTD  WASC 139 and suffer Preferential Payment Claw back of $1.4M
On the 29th January 2012 Australian legislation changed the way we deal with ownership, retention of title (ROT) & bankruptcies, as seventy National registries became one, known as the PPSR under the Personal Property Securities Registry Act.
By cancelling deposits made to unsecured creditors and performing Preferential Payments claw backs (regardless of the bank account balance), liquidators can now pay Secured Creditors with the recovered funds.
You can now easily become a secured creditor with all of your clients and get paid in order of registration and avoid Preferential Payments claw backs.
Correctly written legally binding Terms of Trade are required to ensure validity of your registrations and the protection of your assets.