The PEXA Group Ltd (ASX: PXA) share price is in focus after the company acknowledged a draft report from the NSW Independent Pricing and Regulatory Tribunal (IPART) proposing a 20% revenue reduction for regulated service fees, which could impact an estimated $70 million in revenue.
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What did PEXA Group report?
- IPART draft report proposes reducing PEXA Exchange's regulated revenue requirement by about 20%.
- This equates to an estimated $70 million reduction in revenue for PEXA.
- The draft report recommends fee reductions over one year, but PEXA is advocating for a four-year phase-in.
- No immediate changes to PEXA's service fees; current arrangements remain in place for FY27.
- Potential changes would commence from 1 July 2027, spanning through FY31.
What else do investors need to know?
PEXA stated that the proposed changes are still at a draft stage and remain open to public consultation. The final IPART recommendations will be submitted to the Australian Registrars' National Electronic Conveyancing Council (ARNECC) after this process. Importantly for investors, any changes to regulated Electronic Lodgement Network Operator (ELNO) service fees wouldn't start until FY28. PEXA has highlighted the importance of phasing any reduction to allow the business time to adjust and maintain stability. An investor briefing will be held today at 9:30am (AEST), offering more detail on PEXA's response and future plans.
What's next for PEXA Group?
PEXA will take part in the public consultation process, including a scheduled public hearing on 21 July 2026 and the submission of its response before 14 August 2026. The Group will continue engaging with stakeholders and IPART to shape the final outcome of the fee review. In the meantime, PEXA is focused on advocating for a more gradual introduction of any price changes and remains committed to supporting its customers and the property settlement industry.
PEXA Group share price snapshot
Over the past 12 months, PEXA shares have declined 15%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 2% over the same period.
