Public Benefit Entity Tier Sizes

We want to hear your feedback on our proposals to increase the Public Benefit Entity (PBE) tier size thresholds. Your feedback will help us assess whether the proposed expenditure levels are appropriate for the PBE sector.

The proposed new thresholds are:

  • $33 million for Tier 2  
  • $5 million for Tier 3 

The PBE tier sizes in the Accounting Standards Framework (ASF) determine the accounting standards that different types of PBEs must follow when preparing general purpose financial reports. 

Tier 2 

The XRB is proposing to increase the tier 2 threshold from $30 million to $33 million.

The legislative threshold on which the tier 2 threshold is based (the legislative definition of a “large” entity) has recently been amended from $30 million to $33 million and this change will maintain alignment.  

Note - the while the tier 2 threshold is based on total operating expenditure the legislative definition is based on total revenue. The XRB are not proposing to change the basis of the threshold. 

Tier 3 

The XRB is proposing to increase the tier 3 threshold from $2 million to $5 million.

The legislative measure on which the tier 3 threshold was originally based is no longer in effect. Therefore the XRB has applied judgement to determine a tier 3 threshold which would correct for the effects of inflation since 2012, future proof the ASF until the XRB carries out a first principles review, and reflect the objective for the benefits to exceed the costs of reporting for smaller tier 2 PBEs.  

Accessing the consultation document

The consultation document explains the rationale for the proposals, the impact on the PBE population, and the questions for respondents. We encourage you to read the consultation document and share your comments with us.


Commenting on the consultation document

Please send us your comments – both formal and informal – by 26 January 2024 

You can comment by:

We intend on publishing all comments on the XRB website, unless they may be defamatory. If you have any objection to this, we will not publish them. However, they will remain subject to the Official Information Act 1982 and, therefore, may be released in part or in full. The Privacy Act 2020 also applies.