The Guide to Economic Appraisal (2021) by Infrastructure Australia provides nationally consistent guidance for assessing the economic merits of major infrastructure proposals in Australia. The guide supports evidence-based decision-making by outlining best practice methods for cost-benefit analysis (CBA) and related appraisal techniques.
It establishes a structured framework covering problem definition, option development, demand forecasting, identification and monetisation of costs and benefits, and risk and uncertainty analysis. Key impacts assessed include travel time savings, safety improvements, environmental effects, wider economic benefits, and social outcomes. The guide emphasises transparency, proportionality, and sensitivity testing to ensure robust results.
Economic indicators such as Net Present Value (NPV), Benefit-Cost Ratio (BCR), and Internal Rate of Return (IRR) are central to the analysis. The framework informs Infrastructure Australia’s Infrastructure Priority List and funding recommendations.
