Overview and Roadmap

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

• equity investments
• loans (including standalone loans and loan programs on either commercial or concessional terms)
• guarantees and similar instruments (including underwriting and letters of comfort (that are less binding than guarantees))
• hybrid instruments (blend of the above e.g. 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. Commonwealth entities should consult with Department of Finance about the relevant thresholds for materiality. Entities should engage with the Department of Finance, Treasury, and/or Infrastructure Australia as early in this process as possible. Entities should consult with Finance for assistance through this process, including 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 allows for consideration of a completed project selection process and an initial deliberation of different delivery vehicle and investment and commercial options.
• Second-pass consideration is supported by a detailed business case including a detailed implementation plan, strategy for active whole‑of-life management including governance and controls for mitigating risks, and an exit strategy (where appropriate).