PEXA formally responds to IPART draft report on ELNO service fees
PEXA Group (ASX: PXA) has lodged its submission and supporting documents in response to IPART’s Draft Report on the Review of Electronic Lodgment Network Operator (ELNO) service fees, dated 18 August 2026.
The submission discloses actual FY26 Australian Exchange transaction volumes and is backed by independent expert reports commissioned from a number of distinguished academics. The response contests both the methodology and approaches set out in IPART’s Draft Report.
The development lands just days ahead of a key catalyst. PEXA will report its FY26 results on 28 August 2026, where the ongoing Review will be discussed alongside FY27 commentary.
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What the submission reveals about PEXA’s volumes
The submission puts hard numbers on the table. PEXA’s Australian Exchange processed 4.2 million transactions across FY26.
The composition breaks down as follows:
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2.67 million transfers
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0.97 million refinances
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0.55 million other transactions
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July 2026 transfer volumes of approximately 192,000
Notably, the FY27 forecast transaction volumes have been redacted in the submission, pending finalisation of the Group’s FY26 results and FY27 guidance. This figure is withheld and has not been estimated. PEXA has stated it anticipates a fall in transaction volumes in FY27 in light of recent macroeconomic changes.
| Volume Category | FY26 Figure |
|---|---|
| Transfers | 2.67 million |
| Refinances | 0.97 million |
| Other | 0.55 million |
| Total Australian Exchange | 4.2 million |
| July 2026 transfers | ~192,000 |
PEXA’s pushback: independent expert evidence
Beyond the volume data, PEXA has mounted a substantive challenge to the regulator’s approach. The company commissioned independent expert reports from a number of distinguished academics, focusing on the appropriate methodology for assessing its ELNO service fees and rate of return for a digital platform.
According to PEXA, these reports provide further evidence for its concerns and articulate alternative methodologies and approaches to those set out in the Draft Report. The reports and submission are available on PEXA’s website.
The IPART Draft Report that prompted this submission proposed a $70 million revenue cut proposal, targeting an approximately 20% reduction to PEXA Exchange’s regulated revenue requirement through lower transfer transaction fees, with PEXA pushing for a four-year phase-in against IPART’s preferred one-year implementation.
The expert reports address three areas:
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Appropriate methodology for assessing ELNO service fees
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Appropriate rate of return for a digital platform such as PEXA
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Alternative methodologies and approaches to those in the Draft Report
Understanding ELNO service fees and why they matter
An Electronic Lodgment Network Operator (ELNO) operates the digital platform through which PEXA processes property settlements. PEXA operates the dominant platform of this kind in the Australian market.
The scale is considerable. Since 2013, PEXA has facilitated more than 26 million property settlements, and today 90% of all property transfer settlements in Australia are processed on the PEXA platform.
Its review of ELNO service fees directly affects the fees PEXA is able to charge for processing settlements.
PEXA’s dominant position in that market was reinforced earlier in 2026 when ARNECC’s halt of the interoperability program removed the most credible structural threat to its market share, preserving the moat that underpins the revenue base now under regulatory scrutiny.
What happens next: the regulatory timeline
The process remains in motion, with several steps ahead before any outcome is settled. IPART’s final report is currently expected to be provided to the NSW Government by the end of September 2026.
From there, the process unfolds as follows:
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The report is referred to ARNECC
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ARNECC is expected to consider the report, undertake stakeholder consultation, and determine its response
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The timing of ARNECC’s response is uncertain, although the process may take several months
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On 28 August 2026, PEXA reports its FY26 results, with an investor call at 10:30am AEST covering the ELNO Review, FY27 commentary and other Group matters
For investors, the FY26 results call on 28 August 2026 stands as the near-term catalyst. It should provide the first detailed commentary on FY27 conditions alongside management’s view on the Review.
The regulatory outcome itself, however, remains unresolved. With IPART’s final report due by the end of September and ARNECC’s response carrying an uncertain, potentially multi-month horizon, the pricing question is unlikely to be answered in the immediate term. The 28 August update will be the next point of clarity.
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