ARNECC drops interoperability, PEXA keeps e-settlement monopoly

ARNECC walked away from the interoperability plan that was supposed to open Australia's eConveyancing market, telling stakeholders on 31 March 2026 it will "not proceed" with the program at this time.

Ministers met on 24 March in the Ministerial Forum that set the groundwork for the decision, which ARNECC confirmed a week later in a media release that said its attention would shift to tighter oversight of Electronic Lodgment Network Operators (ELNOs).

PEXA used its 31 March ASX announcement to underline what was at stake, noting that 90% of Australian property transfer settlements run on its platform and positioning the company to keep working with ARNECC on improvements to the existing network.

ARNECC pulls the plug

Without Commonwealth Government support, ARNECC will not proceed with the Interoperability Program at this time, including not proceeding with implementing direct connect interoperability, the practitioner choice interoperability model or the other models for competition considered in the CBA (Cost Benefit Analysis) report.

— ARNECC, media release

ARNECC framed the decision as a practicality call, listing "time, cost and complexity" first and flagging uncertainty over whether the benefits would justify the build.

The time, cost and complexity of implementing interoperability, regardless of the model.

— ARNECC, media release

Banks sat at the centre of the problem, with ARNECC effectively saying it could not force their participation and that without the major banks the plumbing does not work.

The absence of an incentive for participation, active leadership, support and cooperation by the banks.

— ARNECC, media release

Practitioners saw the decision as a retreat from the competition promise, protecting the default network while leaving critics arguing the same point again: that government is choosing regulation after the fact over competition up front.

Banks and the Commonwealth get named

ARNECC paused design-and-build work in September 2024 after the interoperability effort had been running in some form for five years, with the public blame now shifting to who holds the regulatory levers.

Ministers recognised that critical aspects of interoperability, including financial settlement and banking integration, fall within the regulatory jurisdiction of the Commonwealth, as States and Territories do not directly regulate banks and other financial institutions.

— Ministers' Statement, Ministerial Forum

Ministers pointed straight at Canberra, with the statement noting that "States and Territories do not directly regulate banks" and that financial settlement sits with the Commonwealth, suggesting that without federal agencies at the table interoperability was always going to stall.

ARNECC also signalled that reform might need a harder edge, describing the "need for leadership" from Commonwealth regulators and raising the prospect of "mandating bank participation" in situations where it is appropriate.

The need for leadership, participation, full support, and cooperation of the Commonwealth Government and its regulatory authorities as responsible entities, for the interoperability program (or any model) to succeed, including mandating bank participation in any reform (where appropriate).

— ARNECC, media release

PEXA's position as default network

PEXA told investors it will keep working with ARNECC on upgrades to the existing network, pitching the arrangement as better "national consistency" and "better outcomes" for users without needing to defend its market share to make the point.

PEXA will continue to work with ARNECC and the relevant authorities to improve the existing national network with the aim of achieving greater national consistency and better outcomes for customers and consumers.

— PEXA Group Limited, ASX announcement

Today, 90% of all property transfer settlements in Australia are processed on the PEXA platform.

— PEXA Group Limited, ASX announcement

Since 2013, PEXA has facilitated more than 26 million property settlements.

— PEXA Group Limited, ASX announcement

The NSW Parliament document on the privatisation timetable records that PEXA was sold via a 2018 trade sale, completed on 16 January 2019, framing today's policy question: if the network is private, what mechanism is left to create competition?

A five-year program

The joint Ministerial and ACCC statement of 1 July 2021 backed interoperability in plain language, with "all States and Territories" reaffirming support for a competitive marketplace in what is the benchmark ARNECC is now stepping away from.

All States and Territories reaffirmed their support of interoperability between ELNOs and a competitive electronic conveyancing marketplace.

— Joint Ministerial and ACCC statement

ARNECC said on 23 December 2025 its Functional Requirements and Cost Benefit Analysis reports were complete, though it warned even then that the work would be "complex" and could degrade service in the short term in what now reads like a preface to today's decision.

The reports show that, notwithstanding potential benefits, implementing interoperability is expected to be complex, require close coordination with the banking industry and potentially result in some degradation of service, at least in the short term.

— ARNECC, interim statement

What ARNECC says comes next

ARNECC's new pitch is regulation-first, with the council saying it will "strengthen" the existing national framework and focus on resilience, consumer protection and certainty for industry participants.

ARNECC will strengthen the existing eConveyancing national regulatory framework to protect consumers, improve resilience and provide greater certainty for industry participants, building on work that is already underway.

— ARNECC, media release

ARNECC's compliance plan is explicit, flagging monitoring of ELNO compliance, strengthening the enforcement framework and taking enforcement action "where appropriate" in moves that may improve guardrails but do not create a rival network.

Industry pressure has not eased

Legal Practice Intelligence reported that a March 2025 webinar drew more than 250 legal professionals, conveyancers and industry participants, with speakers warning that without competition, price and resilience risks accumulate in language that was not subtle.

If we do not shape the future of eSettlement, it will be shaped for us. The industry is crying out for choice, but regulatory inaction is allowing an unchallenged monopoly to persist.

— Lee Bailie, Head of Property, InfoTrack

InfoTrack's Lee Bailie put it as a choice-versus-control fight: "shape the future" or be shaped by it. Jared Zak, from Dott & Crossitt, tied the monopoly question directly to fees, saying "PEXA's fees rise every year" while conveyancers are squeezed. Those are the politics ARNECC now inherits.

PEXA's fees rise every year while conveyancers face increasing downward pressure on pricing. We are forced into a race to the bottom, limiting our ability to invest in talent and innovation.

— Jared Zak, Founder, Dott & Crossitt Conveyancers & Solicitors

Sympli CEO Philip Joyce made the economic case in one line, saying "No economic theory supports monopolies" outside essential infrastructure and raising the question of whether government has just treated the dominant platform as essential infrastructure without saying so.

No economic theory supports monopolies outside of essential infrastructure like railways. A competitive eSettlement market will drive innovation, reduce costs, and create much-needed resilience.

— Philip Joyce, CEO, Sympli