PEXA revenue targeted for 20% reduction

• The New South Wales pricing regulator IPART issued a draft recommendation proposing a 20% cut to the regulated revenue requirement for the domestic exchange operated by electronic conveyancing firm PEXA.
• The draft proposal triggered an immediate 11.8% drop in the company's share price to $9.30 following the market announcement.
• Regulators initiated the pricing intervention after formal plans to mandate competition within the Australian electronic conveyancing sector were abandoned in April.

The New South Wales Independent Pricing and Regulatory Tribunal, known as IPART, issued a draft recommendation to reduce the regulated revenue requirement for PEXA (ASX:PXA) by 20%, which equates to an estimated $70 million reduction in fiscal year 2026–2027.

The regulatory crackdown follows a market shift in April when Australian policymakers formally abandoned long-running plans to force competition into the electronic conveyancing monopoly sector.

The proposed fee reductions will not take effect before July 1, 2027, and are scheduled to apply across a four-year regulatory period extending to fiscal year 2030–2031.

The pricing regulator stated that the draft recommendations remain open for ongoing public consultation and are subject to change before final submission to the state government.

Following the announcement, the PEXA share price was down at $9.30.

The proposed fee changes target two primary categories, including a recommended 16% transaction fee cut for single titles and a 14.6% reduction for multiple titles under the transfer of interest category.

The tribunal also recommended that transaction fees for transfer titles or transfers of interest involving financial settlements be reduced by 36.6% for single titles and by 33.1% for multiple titles.