Overview and Roadmap

This RMG covers all policies and programs delivered using non-grant financing approaches, including proposals using:

• equity investments
• loans (including standalone loans and loan programs on commercial or concessional terms)
• guarantees and similar instruments, for example underwriting
• hybrid instruments (blend of the above, for example, convertible note)
• investment funds (including any funding set aside for the purpose of earning interest or returns), and
• Specialist Investment Vehicles.

The decision-making process for major projects is set out in the diagram below.

Material investment proposals (including guarantees) are required to complete a first-pass and second-pass process, in line with the Budget Process operational Rules (BPORs). Commonwealth entities should consult with Department of Finance to confirm materiality thresholds. Entities should engage early with the Department of Finance, Treasury, and/or Infrastructure Australia.

Entities should consult with Finance for assistance through this process by providing access to the appropriate resources and expertise, including the 3 step commercial assessment outlined in the Commonwealth Investment Framework and Decision-Making Process for Major Projects below.

• First-pass consideration involves the review of the project selection process and presents initial options for different delivery vehicles, and the consideration of investment, and commercial arrangements.
• Second-pass consideration is supported by a detailed business case including an implementation plan, strategy for active whole‑of-life management including governance and controls for mitigating risks, and an exit strategy (where appropriate).