A change to the definition of a lease under the Personal Property Securities Act, which takes effect this week, will reduce the complexity and cost of registration requirements under the PPSA.From October 1 businesses that lease out serial numbered goods, such as motor vehicles, aircraft, boats, excavators and loaders, for less than a year will, generally, no longer need to record those transactions on the Personal Property Securities Register.Under the old rule, leases of serial numbered goods for a term of 90 days or more were deemed to be security interests and therefore required registration on the PPSR.The inclusion of such a broad category of security interests was the most controversial aspect of the PPSA. Equipment hire businesses found the registration requirements extremely complex and costly.The amendment, Personal Property Securities Amendment (Deregulatory Measures), will substantially reduce the number of transactions that give rise to a security interest under the PPSA.Under the new rule, leases for less than 12 months will only give rise to a security interest and require registration if they "in substance" secure payment or performance of obligations.Rules relating to leases of one year or more, or for an indefinite term, are unchanged (regardless of whether the goods are serial numbered). Security interests should still be registered on the PPSR.The change is not retrospective. Security interests for leases of serial numbered goods for a term of more than 90 days entered into before October 1 should still be registered.If a lessor with goods subject to the PPSA fails to register its interest on the PPSR the goods may be deemed to be property of the lessee upon the lessee's insolvency.