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Selected cases

Federal Court of Australia · [2026] FCA 281

Gastevich v Starwest Investments

A Federal Court case about late PPSR registration, secured creditor risk and court relief under s 588FM.

Federal Court of Australia17 Mar 2026

Plain-English explainers, not legal advice. Check the linked official source before you rely on a specific section, and get advice for your situation.

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Quick read

  • Late PPSR registration can put a secured creditor at risk if the grantor later enters external administration.
  • A Federal Court case about late PPSR registration, secured creditor risk and court relief under s 588FM.

Use this to check

  • PPSR timing matters because late registrations can be vulnerable in external administration.
  • Court relief may be available for inadvertence, but it is discretionary.
  • Other creditors' prejudice is a key issue in late-registration applications.

Decision snapshot

  1. 1

    What happened

    • Gastevich sought orders fixing the latest time for a PPSR registration against Starwest Investments.
    • The issue was a failure to register collateral within the relevant Corporations Act timing rules, said to have happened through inadvertence.
    • If a relevant external administration event occurred within six months, the late registration risked vesting consequences unless the Court granted relief.
    • The Court considered prejudice to creditors and made orders subject to a condition preserving liberty for interested persons in specified circumstances.
  2. 2

    What the court had to decide

    • The Court considered whether to fix the latest registration time under s 588FM of the Corporations Act for a PPSR registration made late through inadvertence, including potential prejudice and conditions protecting interested persons.
  3. 3

    What the court decided

    • The Federal Court made orders fixing 11 December 2025 as the latest registration time for the relevant PPSR registration.
    • The orders included liberty for a sufficiently interested person to apply to set aside or vary the orders if a relevant external administration event occurred within six months.

Practical impact

Practical read

  • Late PPSR registration can put a secured creditor at risk if the grantor later enters external administration.
  • Security workflows need to happen when the deal is made, not when insolvency is already on the horizon.

Useful next steps

  • PPSR timing matters because late registrations can be vulnerable in external administration.
  • Court relief may be available for inadvertence, but it is discretionary.
  • Other creditors' prejudice is a key issue in late-registration applications.
  • Security documents and PPSR registration should be connected in one completion checklist.
  • Register security interests immediately after signing or before the required deadline.

Practical read

This is another PPSR timing case, and that is exactly why it matters. The same pattern keeps appearing: parties create security, registration is missed or late, and then the secured party needs court relief to avoid losing the benefit if insolvency happens.

The Court granted relief, but that does not make late registration a safe strategy. Relief depends on evidence, timing, prejudice to other creditors and the Court's discretion. It also costs time and money that could have been avoided with a registration workflow.

For small businesses, the rule of thumb is practical. If you lend money, sell valuable goods on retention of title, lease equipment, take a charge, or rely on security over business assets, PPSR registration should be part of settlement or onboarding. It should not sit in someone's inbox.

Checks to run

Key points

  • Register security interests immediately after signing or before the required deadline.
  • Use a completion checklist that links security documents to PPSR registration.
  • Check grantor details, collateral class and serial-number requirements before lodging.
  • Review PPSR status as soon as a borrower or customer shows insolvency risk.
  • Keep evidence explaining any delay if urgent court relief becomes necessary.

Key takeaways

  • PPSR timing matters because late registrations can be vulnerable in external administration.
  • Court relief may be available for inadvertence, but it is discretionary.
  • Other creditors' prejudice is a key issue in late-registration applications.
  • Security documents and PPSR registration should be connected in one completion checklist.

Related topics

Finance, Payments & SecurityInsolvency & RestructuringContracts & Commercial

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