PEXA Group Limited (ASX: PXA) today participated in a virtual public hearing held by the Independent Pricing and Regulatory Tribunal (IPART) of New South Wales on 21 July 2026. PEXA, a world-leading digital property exchange business listed on the Australian Stock Exchange, facilitates the vast majority of property transfer settlements in Australia and has recently expanded into the UK market. The hearing forms a crucial part of IPART’s ongoing Review of Electronic Lodgement Network Operator service fees, during which PEXA presented its key concerns regarding the regulatory body’s draft report and its proposed methodologies.
During its submission, PEXA strongly contended that the Building Block Model, traditionally applied to regulate physical infrastructure, is ill-suited for the unique characteristics of capital-light digital infrastructure like its platform. The company further asserted that IPART’s proposed Initial Asset Base (IAB) is materially understated, a calculation PEXA believes fails to adequately reflect its historical investments. PEXA warned that if this flawed approach to the IAB were to be pursued beyond the current regulatory period, it would inevitably create an unsustainable financial profile for the Group, potentially hindering future innovation and market development.
PEXA highlighted that IPART’s draft report is fundamentally based on a flawed approach to setting its Initial Asset Base, relying on highly sensitive and contestable inputs rather than employing more appropriate and robust methodologies. The digital exchange provider specifically called for a comprehensive re-evaluation of IPART’s approach to key financial parameters, including depreciation, the rate of return on historical expenditure, and the asset life assumptions. PEXA concluded by encouraging a more cautious and evidence-based approach to any future pricing recommendation, aiming to mitigate undue operational and unpredictable regulatory risks without any clear evidence of a commensurate customer benefit. Speaking notes from the hearing are available on PEXA’s website, with a full transcript expected on IPART’s website in due course.
