Undertaking a CBAx: Answers and Tips to Frequently Asked Questions

Agencies that use the Treasury’s CBAx tool have support available to undertake a cost-benefit analysis (CBA) and inform policy decision-making. CBAx can assist you to undertake analysis of the initiative’s impacts and show how the initiative contributes. Budget initiatives need value for money analysis, supported by a CBA of the benefits and costs. CBA and CBAx should be used in a fit-for-purpose way, so that the information is useful for decision-making. The budget CBA and CBAx requirements are set out in the budget guidance, which is issued via CFISnet.

This document provides supporting information to the Guide to Social Cost Benefit Analysis and should be read in conjunction with the CBAx Tool User Guidance. It contains tips and answers to some frequently asked questions for address some commonly faced issues.

The answers are provided under four broad categories:

  • Using and prioritising CBAx results in analysis
  • Fundamental elements
  • Information and evidence
  • Varying impact entries