Interoperability: ‘freedom of choice’ delayed but hope in Qld
The long-time challenge of bringing electronic lodgement network operators together in a seamless environment has stalled by issues raised by banks.
WHETHER we realise it or not, “interoperability” is a big part of our lives. It’s how different banks transfer funds and telco systems communicate with each other.
It should also be part of eConveyancing: a reform that allows parties using different Electronic Lodgement Network Operators (ELNOs) to complete the same transaction.
Currently, all parties must use the same ELNO, such as PEXA, to collaborate in the same workspace.
Interoperability would allow them to work together even if they use different ELNOs.
But that reform is stalled due to issues raised by the banks around financial settlements.
The delay was highlighted this month by e-settlement services provider Sympli.
The ELNO has completed development of its Queensland electronic lease lodgement capability, “but cannot roll it out at scale due to the continuing lack of interoperability.”
Sympli’s CEO, Philip Joyce, says the technology is ready to meet customer demand.
“Practitioners and businesses want the speed and certainty of digital leasing, and Titles Queensland has paved the way,” he said.
“But until interoperability is delivered to market, many will have to rely on the monopoly network solely.”
Sympli explained that Queensland has mandated eConveyancing for key instruments since 20 February 2023.
Titles Queensland confirmed Sympli and PEXA as the two approved ELNOs and was working to expand the scope of instruments available for digital lodgement – including leases.
In a statement, the company said, “Recent changes were introduced to make lease registration compatible with eConveyancing… demonstrating market readiness for electronic leasing as soon as ELNOs can transact interoperably.
“Despite industry progress, ARNECC (the national eConveyancing regulator) paused the design build test workstreams for interoperability in June 2024.
“This pause has materially impeded competition and the delivery of consumer benefits.”
Sympli expects an ARNECC review will confirm that a first practitioner-led release of interoperability can be implemented in Queensland by the end of 2026.
“Interoperability is the cornerstone of a safe, competitive eConveyancing system,” Mr Joyce said.
“Ministers endorsed it, regulators trialled it, and NSW and Queensland have signalled their intent to lead.
“The remaining barriers are regulatory and program delivery choices – not technology readiness. It’s time to move from reviews to release.”
