Sympli comments on IPART Review on Interoperability Pricing

Wednesday 30 August 2023 – Yesterday, the Independent Pricing and Regulatory Tribunal NSW (IPART) published their final report from the “Review of interoperability pricing for Electronic Lodgment Network Operators”. This report recommends the maximum fees payable to a Responsible Electronic Lodgment Network Operator (RELNO) by a Participating Electronic Lodgment Network Operator (PELNO) in an interoperable eConveyancing transaction.

After substantial consultation with ELNOs, regulators, industry groups and other relevant stakeholders, IPART has recommended the following fees for 2023-24:

The maximum RELNO fee of $0.75 (ex-GST) for 2023-24, to be paid to the RELNO by each PELNO per-subscriber that they represent in every interoperable transaction; and
The maximum default RELNO surcharge of $6.20 per transaction (ex-GST) for 2023-24, paid by an ELNO when it is designated as the RELNO by business rules, but does not perform this role and the role is designated to another ELNO.

Whilst Sympli disagrees that fees are necessary for all interoperable transactions, it supports the process that IPART has undertaken, and the outcome they have reached. Critically, the independent engagement of IPART has determined the maximum fees that will support competition in the eConveyancing market, and enable the success of interoperability. In particular, we commend IPART’s rejection of the incumbent monopoly’s suggested default RELNO surcharge of $83.80 as unreasonable. In addition, we acknowledge and agree with observations made by IPART identifying the high barriers of entry to new entrants to the market, as well as the important role that interoperability will play in enabling competition in the industry.

Sympli understands that these recommendations will be adopted by the Australian Registrars National Electronic Conveyancing Council (ARNECC) in a future version of the Model Operating Requirements.

Sympli notes that IPART will consider a broader review into ELNO pricing in the future. The need for competitive pricing in the ELNO market is clear, with the incumbent monopoly, PEXA, reporting in their FY23 Results Presentation on Friday a pricing uplift of $14m in FY23, net of inflation and cost impacts.

Sympli Chief Executive Officer, Philip Joyce, said: “It is essential that the commercial framework underpinning interoperability enables competition to thrive in the ELNO market.

We thank IPART for their engagement and efforts to deliver a fair outcome for interoperability pricing, allowing new entrants such as Sympli to compete in a market that is highly concentrated by the incumbent monopoly.

Customers urgently need that competition. The incumbent’s $14m annual pricing benefit is a direct cost to customers going to their monopoly profit. Sympli looks forward to delivering real benefits to customers.”

–ENDS–

Media Inquiries: Jerome Boutelet, Public Affairs Manager at media@sympli.com.au, or 0411 045 119

About Sympli
Sympli is the result of a collaboration between InfoTrack and ASX. We want to create more opportunity, add value and represent the market with an e-Settlements service from which practitioners across Australia can benefit.

InfoTrack is Australia’s leading provider of e Conveyancing technology and services and has been creating software for the legal and financial industries for over 18 years. InfoTrack has a focus on simple, end-to-end solutions, leveraging expertise to craft a truly integrated e-settlements platform that you can trust.

As one of the world’s leading financial exchanges, the ASX bring experience in clearing and settling transactions with security, speed, reliability, and cutting-edge technology. The combination of the two brings you Sympli: the next-generation e-settlements solution delivering healthy competition, reliability, security and value to the industry. For more information visit www.sympli.com.au