About the NSW Government Business Case Guidelines
Business cases are documents prepared to support government funding decisions. They help decision makers allocate scarce resources by establishing why a proposal is needed, if it will be beneficial, if the risks can be managed, and if it can be delivered.
The NSW Government Business Case Guidelines (TPG24-29) (PDF 2.89MB) are part of the NSW Government Investment Framework that sets the standards for evidence-based policy and budget setting in NSW. They establish best practice and provide a consistent and scalable approach to preparing business cases.
Business cases are mandatory for recurrent, capital and digital proposals above defined cost and risk thresholds. They should not be treated as a box-ticking exercise and should not include investigations or analysis beyond what is needed to inform an investment decision.
The updated guidelines make it easier to develop business cases. Check the summary of key changes (PDF 72.32KB) for an overview of what’s new. The Business Guidelines on a page (PDF 237.59KB) gives a summary of the guidelines.
You can use the Business Case Requirement tool to find out if you need a business case and what type you need.
Gateway policy
The Business Case Guidelines link business case requirements with the risk tier ratings provided through the Gateway Review System.
The Gateway system provides project assurance through independent reviews at key decision points, known as gates, in a project's lifecycle. As part of this system, projects get a risk tier rating. Lower risk projects need less detailed business cases and evidence.
Resources are available for agencies to self-assess risk tiers before a formal risk rating is endorsed
You can find more information on the Gateway Review System.
Fast track business case and investment assurance for government capital commitments
The Fast track business case and investment assurance for government capital commitments TPG 24-30 (PDF 576.6KB) establishes a process for assurance and business case requirements to be altered for capital projects with a government commitment in limited circumstances.
To request approval to fast track a project you will need to complete the Fast track request template (DOCX 969.68KB) and submit to fasttrack@treasury.nsw.gov.au with a copy to gatezero@infrastructure.nsw.gov.au.
Helpful resources
We have helpful business case resources including templates, guides and related policies.
- Business case guidelines on a page (PDF 237.59KB)
- Summary of key changes (PDF 72.32KB)
- The Investment Framework e-learning modules provide users with a basic understanding of business cases and other related Investment Framework policies.
- Business Case Requirement Tool.
Frequently asked questions
Business cases are documents prepared to examine whether a proposal delivers value for money for the NSW Government. They provide Cabinet or other decision-makers the information needed to decide whether to fund a proposal.
Business cases are needed to support effective resource allocation. They analyse whether investments are a good use of taxpayer money, align with government priorities, and are deliverable. Business cases promote the use of evidence and support consideration of material issues and risks prior to a proposal being funded. A good business case is also a powerful public management tool that ensures government accountability for decision making.
The Business Case Guidelines were last updated in 2018 and are reviewed every 5 years. We consulted with a range of stakeholders as part of this regular review and found opportunities to better align the Guidelines with new Government priorities, and to better support agencies in developing proposals.
You can read the summary of key changes (PDF 72.32KB).
The updated Guidelines should be adhered to from the next budget period (FY25/26). Business cases being prepared for consideration in the FY25/26 Budget and that are already well advanced may continue to apply the previous Guidelines.
A program is a collection of related projects to address a common problem or realise a common opportunity, delivered in a coordinated manner. It may be better, in some situations, to prepare a business case for an entire program rather than separate business cases for each individual project.
The updated Business Case Guidelines support expanded use of program business cases, and sets out considerations for determining the appropriateness of preparing either a preliminary program business case, or seeking funding using a full program business case.
You can find more information in Section 2.1 in the Business Case Guidelines.
The Guidelines set out what evidence is required for proposals with a total cost (including capital and recurrent cost) of $10 million or more. The requirements depend on the type of proposal (recurrent, capital, or digital) and its risk tier, as set out by the relevant assurance framework. Large and high-risk proposals (tier 1 and 2 proposals) require both a preliminary and full business case. Mid-tier proposals can prepare single lean business case, and smaller low-risk proposals can fill in a short-form assessment template instead of a business case.
Figure 1 in the Business Case Guidelines provides a summary of business case requirements based on proposal type and risk level.
For more information on Gateway policy see the NSW Gateway Policy TPG22-12 (PDF 684.77KB).
Business cases should be proportionate to the size and risk of the proposal. This is embedded within the updated Guidelines through the different documents used to support a funding decision (Short-form assessment, Lean business case, and Full business case). Proportionality also applies within these document classes – a Full business case for a tier 1 project will need more comprehensive analysis than for a tier 2 project.
Table 2 of the Business Case Guidelines has a summary of business case requirements across different stages and risk tier.
The Fast track TPG establishes a process to allow business case and assurance requirements to be altered in limited circumstances where capital projects have an existing government commitment. The policy was developed to ensure that business cases are not developed retrospectively where they are not adding value to decision making. Strict criteria and approval processes apply so that risks and benefits of accelerating a project are identified and considered in fast track decisions.
More information is available in the Fast track business case and investment assurance for government capital commitments TPG24-30 (PDF 576.6KB).
Contact the Centre for Economic Evidence
For assistance and further information on NSW Government Business Case Guidelines, contact Treasury’s Centre for Economic Evidence team at cee@treasury.nsw.gov.au.
If you require advice or review on a business case, cost-benefit analysis or evaluation, contact your agency economic and evaluation team, program management office, or consult with your Treasury Policy and Budget agency relationship lead.