№ lp_2_1_19561
Guidance document outlining principles, recommended rates, and institutional practices for selecting and applying discount rates in Australian public sector cost-benefit analysis, including distinctions between social and economic infrastructure and treatment of uncertainty.
Document Type: Guidance note
Subject: Discount rates in cost-benefit analysis
Topic: Economic evaluation of public sector investments
Country: Australia
Institutions Referenced: Department of Treasury and Finance (DTF); Infrastructure Australia; Productivity Commission
Applicable To: Business cases; Regulatory Impact Statements; Legislation Impact Assessments; Infrastructure appraisals
Recommended Real Discount Rates: 4 per cent; 7 per cent; sensitivity testing at 4 and 10 per cent
Approach Endorsed: Opportunity cost of capital
Key Concepts: Social time preference; Opportunity cost of capital; Real and nominal discount rates; Sensitivity analysis
Referenced Publications: Economic Evaluation for Business Cases – Technical Guidelines (2013); Infrastructure Australia Assessment Framework (2018); Victorian Guide to Regulation Toolkit 2 (2014); Valuing the Future: the Social Discount Rate in Cost-Benefit Analysis (2010)
Price: 8 / 10 USD
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