PEXA Group Limited (ASX: PXA) has reaffirmed its position during IPART’s public hearing on the review of Electronic Lodgement Network Operator service fees, arguing that the proposed regulatory framework does not accurately reflect the economics of digital infrastructure. The company contends that applying the traditional Building Block Model, commonly used for physical infrastructure, is unsuitable for its capital-light digital platform. PEXA also believes the proposed Initial Asset Base (IAB) significantly undervalues its historical investments, which could weaken its long-term financial sustainability if adopted beyond the current regulatory period.
The company further stated that IPART’s draft methodology relies on highly sensitive assumptions and contested inputs, particularly regarding depreciation, asset life and the rate of return on historical expenditure. PEXA has urged the regulator to adopt a more measured pricing approach that limits unnecessary operational and regulatory uncertainty while ensuring fair recognition of the value created through its digital infrastructure. The company maintains that no clear evidence has been presented to demonstrate that the proposed framework would deliver proportional customer benefits.
PEXA remains Australia's leading digital property exchange platform, having facilitated more than 26 million property settlements since 2013 and currently processing around 90% of all property transfer settlements nationwide. Alongside its dominant domestic presence, the company continues to expand internationally, building its footprint in the UK digital refinancing and property transaction markets, reinforcing its long-term growth strategy.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au
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PEXA Challenges IPART Fee Framework
PEXA Group Limited (ASX: PXA) has reaffirmed its position during IPART’s public hearing on the review of Electronic Lodgement Network Operator service fees, arguing that the proposed regulatory framework does not accurately reflect the economics of digital infrastructure. The company contends that applying the traditional Building Block Model, commonly used for physical infrastructure, is unsuitable for its capital-light digital platform. PEXA also believes the proposed Initial Asset Base (IAB) significantly undervalues its historical investments, which could weaken its long-term financial sustainability if adopted beyond the current regulatory period.
The company further stated that IPART’s draft methodology relies on highly sensitive assumptions and contested inputs, particularly regarding depreciation, asset life and the rate of return on historical expenditure. PEXA has urged the regulator to adopt a more measured pricing approach that limits unnecessary operational and regulatory uncertainty while ensuring fair recognition of the value created through its digital infrastructure. The company maintains that no clear evidence has been presented to demonstrate that the proposed framework would deliver proportional customer benefits.
PEXA remains Australia's leading digital property exchange platform, having facilitated more than 26 million property settlements since 2013 and currently processing around 90% of all property transfer settlements nationwide. Alongside its dominant domestic presence, the company continues to expand internationally, building its footprint in the UK digital refinancing and property transaction markets, reinforcing its long-term growth strategy.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au