Cabinet Handbook - The Department of the Prime Minister and ...

ANNEX E – PROPOSALS REQUIRING A ‘TWO PASS’ SUBMISSION PROCESS
1. Certain higher risk proposals may require a two-pass submission process.
2. Major infrastructure projects, including Information Communication Technology (ICT) and
Defence-related proposals, require a submission seeking in-principle agreement to establish the
Government’s preferred approach to the project. This submission will focus on options, costings, timing
(schedule) and risks. A second submission is also required, providing a business case for the project,
which includes detailed cost assessments and risk mitigation strategies. Proposals for the acquisition of
new and enhanced defence capabilities are generally considered by the National Security Committee of
Cabinet (NSC) rather than the full Cabinet. Defence Capability Plans, facilities and ICT projects in the
Defence portfolio, assessed by NSC under the two-pass approval process are excluded from the
requirement for a Gateway Risk Assessment (GRA), which determines whether a project is high risk.
3. The Budget Process Operational Rules issued by the Cabinet each year provide further detailed
guidance on two-pass review and approval processes.
4. See the Drafter’s Guide for further details on the two-pass submission process.
Additional assurance processes
5. Proposals which are assessed as having medium or high levels of residual risk must have their risk
assessments provided to the Department of Finance and Deregulation (Finance) and the Department of
the Prime Minister and Cabinet (PM&C). These will be used as one of the bases for identifying when
additional assurance processes, such as Implementation Readiness Assessments (IRAs) and Gateway
Review Processes (Gateway) may be needed.
6. IRAs are commissioned by the Expenditure Review Committee of Cabinet (ERC) or by the Minister
for Finance and Deregulation at the same time a come-forward decision on a proposal is made, on the
basis of the risks of the proposal and advice from Finance. IRAs will give additional assurance for a small
number of high-risk proposals that are not covered by existing mechanisms. The IRAs support
departments and agencies and provide additional assurance to the Cabinet, the responsible minister
and the departmental secretary or agency chief executive on the programs selected.
7. The IRAs are undertaken by independent reviewers with experience in the relevant policy area,
such as former departmental secretaries, over the period of a week. Reports are made available to the
relevant minister, portfolio secretary and/or agency head, senior responsible officer, Finance, PM&C
and the Department of the Treasury. Finance will also refer to the outcome of the IRA in its Green brief
to ERC. Reports will be classified ‘Cabinet-in-Confidence’ as they will be an input to the Cabinet’s
deliberative processes and would not be made public.
8. Gateway examines programs and projects at key decision points. Gateway provides independent
and timely advice to sponsoring agencies, through their senior responsible officials, as the person
responsible for delivering program outcomes.
9. The Cabinet will decide to apply Gateway to high-risk programs and projects where risk and cost
thresholds have been exceeded. Gateway costs should be included in the new policy proposals being
brought forward.
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