ICT Investment Approval Process

If your agency is expecting to bring forward a new policy proposal (proposal) with financial implications of $30 million or more, then you may be subject to the ICT Investment Approval Process (IIAP). The IIAP applies to high-cost and high-risk proposals and aims to assist agencies to develop robust business cases and support the effective implementation of digital and ICT-enabled proposals.

Who needs to complete the IIAP

If you are preparing a proposal (regardless of whether it is partly or totally internally funded) for Cabinet consideration, then the IIAP will apply if your proposal meets all 3 of the following criteria:

digital and ICT-enabled (the policy or service delivery outcomes are highly dependent on the underpinning digital and ICT system)
likely to have total whole-of-life cost estimated to be $30 million or more, including total whole-of-life digital and ICT costs of $10 million or more (whole-of-life costs includes operational costs, capital costs, and maintenance costs)
assessed by the DTA as high risk through consideration of a Risk Potential Assessment Tool (RPAT) assessment (this risk may relate to factors such as significant change, cost, technical or business complexity, workforce capacity and schedule).

Cabinet may request that your proposal undergo the process, even if your proposal does not meet all these criteria.

What agencies need to do

When planning to bring forward digital and ICT-enabled proposals, you should contact the DTA as early as possible to determine if the IIAP applies. Early engagement with the DTA ensures that you will receive timely advice and support throughout your business case’s development.

Where multiple agencies are involved in the delivery of your digital and ICT proposal, all agencies may need to engage with the DTA.

You should also contact your Chief Finance Officer (CFO) unit to ensure that you are aware of and comply with current Department of Finance Estimates Memorandums, covering the Budget Process Operational Rules and the IIAP.

You are required to follow the DTA’s timeframes for submitting draft and final business cases, along with supporting materials, for review. Typically draft business cases should be submitted at least 7 weeks before the Cabinet consideration date, and final business cases at least 1 week before circulating the Cabinet Submission for Coordination Final comments. The DTA will discuss timeframes with you when advising if the proposal is subject to the IIAP.

The first pass business case presents the benefits, costs, risks and implementation options to Cabinet for consideration.
The first pass business case must include:
- a clear strategic narrative that aligns business needs with policy objectives, supported by a well-considered use of digital and ICT
- realistic digital and ICT options to achieve the proposal’s outcomes, with strategies to manage associated risks. Each option should be feasible for implementation upon Cabinet approval and further detailed in the second pass business case
- an indicative cost estimate over the project’s lifetime, including both financial and non-financial benefits, along with a proposed schedule for each option.
A first pass business case may include an approval of additional funds to support the development of the second pass business case. If approved by Cabinet, you can proceed with your nominated ICT option and develop a second pass business case, along with any necessary prototyping or piloting activities.
Further information and guidance about the structure of your first pass business case is contained in the templates section.
The second pass business case presents Cabinet with detailed information on the preferred option agreed by Cabinet at first pass. This enables an informed final decision on the investment.
The second business case and associated attachments must provide enough information to demonstrate that the necessary planning, analysis and consultation needed for successful implementation of the preferred solution has been undertaken.
The second pass business case must include:
- sufficient detail on deliverables, schedule, benefits, and implementation monitoring
- cost estimates based on rigorous planning of digital and ICT infrastructure, applications, and support using methods like proofs of concept, market approaches (if applicable), expert advice, comparable implementations, and market assessments
- details on the proposal’s development by detailing how the digital and ICT solution can be delivered to achieve capability and benefits with minimised risk
- governance arrangements specifying methodology for progress monitoring and measurement, emerging risk management, and government reporting frequency
- agreed assurance activities in accordance with the Assurance Framework for Digital and ICT-enabled Investments.
In rare cases, the Portfolio Minister may seek Prime Minister or Cabinet agreement to combine the first and second pass business cases into a single submission. A combined pass business case should only be considered when:
- there is a clear and urgent business need for investment
- rapid implementation is needed
- there is only one workable implementation option or several highly developed implementation options
- the relevant agency has undertaken sufficient planning, analysis and consultation to demonstrate the requirements of a second pass business case have been met.

How the DTA reviews your business case

You can submit your business case to the DTA by emailing investment@dta.gov.au.

The DTA will work closely with you throughout the development of your business case to ensure it provides the necessary information needed to support Cabinet’s decision. This process may involve meeting regularly with your DTA contact(s) and submitting multiple draft business cases for review before finalisation.

As the costs for the digital and ICT-enabled components of your proposal must be agreed by the Department of Finance, you should provide your business case to the Department of Finance to facilitate the costing process and ensure timely agreement on costs.

The DTA and the Department of Finance work collaboratively, including exchanging information you provide, to assess applicability of the Gateway Review Process, finalise business cases, and agree costs.

Additional information

If you have any questions about the IIAP or how it applies to your digital and ICT-enabled proposal, please contact Investment Advice and Contestability Branch by emailing investment@dta.gov.au.

Templates to download
Resources to assist you to develop your business case:
1st pass business case template (Word, 225 Kb)
2nd pass business case template (Word, 102Kb)
Department of Finance Business Case Guide (PDF, 959Kb)

Investment Oversight Framework