Methodology Paper – Initial Asset Base for an Electronic Lodgment Network Operator - 31 March 2026

This methodology paper sets out IPART’s proposed approach to establishing an initial asset base for an efficient Electronic Lodgment Network Operator (ELNO), which is a key input to the building block framework.

The paper outlines IPART’s proposed cost-based approach, including how early unrecovered costs may be considered, and examines alternative methodologies.

Following the release of the paper, we received several inquiries about an illustrative example showing how a building block model operates under different hypothetical asset bases. All inputs used in this illustrative example, such as the asset base, operating costs, and demand levels, are hypothetical.

In response to these inquiries, we draw attention to the following paragraph from the paper:

“This example is illustrative only and is intended to show the mechanics of the building block approach when the initial asset base is higher or lower, holding all other inputs constant. It does not reflect IPART’s assessment of the appropriate level of the initial asset base or PEXA’s proposal.”

IPART has now published the Draft Report on ELNO service fees, which sets out our draft recommendations, including the application of a building block methodology to establish prices.

The non-confidential submissions we received in response to the Methodology Paper are published below.