Cost-benefit analysis guidance note
The Australian Government is committed to the use of cost–benefit analysis (CBA) to assess regulatory proposals in order to encourage better decision making. A CBA involves a systematic evaluation of the impacts of a regulatory proposal, accounting for all the effects on the community and economy, not just the immediate or direct effects, financial effects or effects on one group. It emphasises, to the extent possible, valuing the gains and losses from a regulatory proposal in monetary terms.
The purpose of this guidance note is to guide policy makers on the use of CBA for policy proposals. The note is relevant for policy makers working on either Australian Government or Council of Australian Governments-related proposals.