PEXA Group (ASX:PXA) warned of a potential AU$70 million revenue impact following the Independent Pricing and Regulatory Tribunal's (IPART) draft report on Electronic Lodgment Network Operator service fees, which proposes reducing transfer transaction charges by around 20%, according to a Friday Australian bourse filing.
The company intends to push for any price cuts to be implemented gradually over a four-year period in order to mitigate business impact, per the filing.
The proposal is still open for public consultation, with IPART expected to issue its final recommendations to the Australian Registrars' National Electronic Conveyancing Council following hearings on July 21 and with submissions due by Aug. 14, the filing said.
The company said that any changes would take effect from July 1, 2027 and apply for a four-year period through fiscal 2031, while existing fee arrangements would remain in place for fiscal 2027, the filing added.
The company's shares tumbled 14% in recent Friday trade and earlier hit a record low.