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Rule 42:
Business cases and investment decisions

Primary requirement

  1. Agencies must obtain Cabinet approval for certain types of expenditure, lease or asset disposal proposals.

Application

  1. If an agency wants to undertake a project which meets certain criteria, it must consult with Treasury and the investment proposal will be assessed and reviewed against Treasury’s published better business cases framework.
  2. The criteria for determining which investment decisions require Cabinet approval, and guidance on the better business cases framework, are available on the Treasury website.

More information

Types of expenditure requiring Cabinet approval

Cabinet approval is required for certain types of expenditure, like lease or asset disposal proposals by departments, Crown Agents and other Crown Entities.

The criteria for determining which investment decisions require Cabinet approval is set through the relevant Cabinet Office Circular linked on the Treasury’s Investment Management System page:

Investment management system – The Treasury New Zealand  

The Treasury also has guidance on investments, roles and requirements, and the Better Business Cases framework.

Investment Management System roles and requirements – The Treasury New Zealand

Better Business Cases – The Treasury New Zealand 

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