Quick answer
In Australian lending, personal property is any property other than land and fixtures. The definition comes from the Personal Property Securities Act 2009 and covers tangible items such as vehicles, machinery, stock and livestock, and intangible items such as invoices owed to you, intellectual property and some licences. It has nothing to do with whether something is personal or business: a company's forklift is personal property too.
Key points
- Legal meaning: everything except land and fixtures, not 'your personal belongings'
- Includes intangibles such as receivables, IP and some licences
- Security over it is recorded on the PPSR, not the state land registry
- Lenders use it for equipment finance, invoice finance and general security agreements
People hear “personal property” and picture a lounge suite or a watch. Lawyers and lenders mean something much wider: in Australian finance, it’s almost every kind of property except real estate, and most of it is owned by businesses.
Where the definition comes from
The Personal Property Securities Act 2009 (the PPSA) set one national system for security over non-land assets. It defines personal property as property other than land, minus a few rights that federal or state laws carve out. Fixtures attached to land are also excluded. Real estate stays under each state’s land titles system; everything else falls under the PPSA.
That leaves a long list. It splits roughly into two groups:
| Tangible | Intangible |
|---|---|
| Vehicles, trucks, boats and aircraft | Accounts receivable (unpaid invoices) |
| Plant, machinery and tools | Intellectual property such as trade marks |
| Stock and inventory | Some licences and permits |
| Livestock and crops | Shares and other investment instruments |
| Office furniture and IT gear | Contract rights |
Why it matters when you borrow
Whenever a lender takes security over anything on that list, it holds a security interest in personal property and needs to register it on the PPSR to protect its position. That single idea sits behind several products:
- Equipment and vehicle finance. A chattel mortgage is secured over one identified asset, such as an excavator.
- Invoice finance. The financier’s security is the business’s receivables.
- Unsecured business loans. Often not truly unsecured. Many come with a general security agreement over all the business’s present and future personal property.
- Supplier terms. A wholesaler using retention of title keeps an interest in goods until they’re paid for.
The key insight for borrowers: the same truck, stock or invoice can only support so much debt. Once one lender has registered over it, the next lender will notice, and the order of registration often decides who gets paid first.
Want to borrow against equipment or invoices you already own? Share a few details and we’ll see what they could support.
A worked example
A Perth landscaping company owns a $90k skid steer outright, has $40k of unpaid customer invoices and carries $15k of stock. It has no property.
All three are personal property. A financier could lend against the skid steer through sale and leaseback, an invoice lender could advance a share of the receivables, and an online lender could take a GSA over the lot. What it can’t do is give all three lenders first place over the same assets. If it signs a GSA first, a later invoice financier will usually need a priority deed before it will fund.
Related terms
A chattel is an older word for a movable item of personal property. See PPSR for how registrations are searched and collateral for security more generally.
Got assets but no property to borrow against?
Plenty of businesses own valuable gear, stock or receivables without owning real estate, and lenders can work with that. Let us know what the business owns, what it owes and what you need the money for. It takes about a minute, and enquiring has no effect on your credit file. We won’t blast your details to a pile of financiers. One person on our team reads it and calls. Please list existing finance accurately, since current PPSR registrations shape which lenders can help.
Frequently asked questions
Does personal property mean things I own personally?
No. In lending it's a legal category, defined in the Personal Property Securities Act 2009 as property other than land, with some exceptions. A company's trucks, stock and invoices are personal property, just as a sole trader's tools are.
Are fixtures personal property?
Generally not. Fixtures, meaning items attached to land so they become part of it, are excluded from the PPSA. A built-in coolroom may be treated as part of the building, while a freestanding fridge is personal property. Where the line falls can be contested, so lenders take care with attached equipment.
Is a car personal property?
Yes. Motor vehicles are a common example and are a type of serial-numbered goods, which means a security interest over them can be registered and searched on the PPSR using the vehicle's VIN or chassis number.
Can invoices really be personal property?
Yes. Amounts owed to your business by customers are intangible personal property, called accounts under the PPSA. That's why invoice financiers register their interest on the PPSR before funding.