This report addresses the challenge that low traffic volumes in remote and regional areas make it difficult for traditional cost-benefit analysis (CBA) methods to support road improvements in these areas in line with community expectations and government policy objectives. Roads in remote and regional areas are often provided at standards above what would be considered economically efficient levels under traditional CBA methods, but there is currently no clear way to make a recommendation as to an acceptable standard. 

The report develops ways to improve the efficiency, equity and transparency of decision-making for road funding in remote and regional areas. CBA is retained as the core appraisal tool, with the additions of social benefits, wider economic benefits and equity weights. The development of the equity weights draws on recent thinking about equity and distributive justice from literature in the disciplines of philosophy, economics and transport planning.

The report offers a rigorous, transparent approach to assessing investments to upgrade roads in remote and regional areas that takes account of social, economic and equity impacts and should promote greater consistency and fairness in decision-making.