The Andrews government has scrapped the regional Victorian Commonwealth Games, just 15 months on from announcing it would serve as the 2026 host.
Premier Daniel Andrews announced the cancellation on Tuesday, citing skyrocketing costs that could have seen the Games cost as much as $7 billion.
Follow the latest reaction to the Victorian government’s decision to walk away from hosting the 2026 Commonwealth Games in our live blog.
Initial estimates had the Games contributing more than $3 billion to the Victorian economy.
“What’s become clear is that the cost of hosting these Games in 2026 is not the $2.6 billion which was budgeted and allocated,” Mr Andrews said.
“I will not take money out of hospitals and schools to host an event that is three times the cost estimated and budgeted for last year.”
In lieu of Games funding, Mr Andrews announced a $2-billion spending package for regional Victoria, $600 million less than the initially promised investment into hosting the Games.
The package includes a $1 billion Regional Housing Fund to build 1,300 new homes across regional Victoria.
Commonwealth Games funding was not featured in this year’s state budget.
Daniel Andrews was asked what the cost would be to terminate the state’s agreement to host the Games, but said he would not “speculate”.
“I’m not going to negotiate with the Commonwealth Games authorities via the media in Melbourne when I’ve got a team of people doing exactly that in London,” he said.
Mr Andrews’s demeanour was a far-cry from the celebratory mood he was last year, as he stood in the middle of Ballarat’s Eureka Stadium announcing the games.
“A games like no other, exactly what we promised” he said in April last year.
“We’re very, very confident that this will deliver jobs, it’ll deliver better facilities, better housing and it’ll be a showcase to the world.”
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Opposition leader John Pesutto on Tuesday called the cancellation a “massive humiliation” for Victoria.
“This decision is a betrayal of regional Victoria and confirms that Victoria is broke and Labor simply cannot manage major projects without huge cost blowouts,” Mr Pesutto said in a statement.
“The cancellation of the Commonwealth Games is hugely damaging to Victoria’s reputation as a global events leader.”
The Victorian Greens echoed those comments, calling Labor’s handling of the Games “a disappointing waste of time and money”.
“It’s clear this is a bit of a schemozzle, and the Labor government needs to get its priorities in order and get back to focusing on the immediate issues people are facing, like the severe lack of affordable housing and cost-of-living pressures,” Acting Victorian Greens leader Ellen Sandell said.
Regional Victoria reels from announcement
Regional Victoria residents were blindsided by the announcement, with major stakeholders caught unawares by the Games’ cancellation.
Greater Shepparton City Council mayor Shane Sali said he was only made aware of the announcement at about 9:30am along with the rest of Victoria.
“Disappointing is an understatement,” Mr Sali said.
“But now my responsibility is to look at what the opportunities can bring from this announcement to ensure we do get investment to regional Victoria.”
Mr Sali said he remained focused on how the redirected funds could be used to upgrade infrastructure such as the Shepparton Sports and Events Centre or committed towards the Shepparton Bypass.
He also called into question how the government’s estimates were so inaccurate, just one year removed from the announcement.
“The question that needs to be asked is how does a $2 billion, $2.5 billion proposal blow out to close to $6.5, $7 billion dollars in a year or two?” Mr Sali said.
Latrobe City mayor Kellie O’Callaghan said that while councils were disappointed by the decision, it was going to be a mammoth task to deliver on what was originally promised.
“I think in that way, we’ve got to be grateful for a decision that will ensure that we aren’t further burdened,” Cr O’Callaghan said.
“[The] increased cost on everything that anyone’s needing to purchase engage with or contract at the moment has escalated to the point where it’s just become an unreasonable burden.”
The Latrobe Valley was set to host shooting, para-shooting, badminton, rugby sevens and women’s Twenty20 cricket.
Australian athletes react to ‘devastating’ announcement
Race walker Jemima Montag won gold at the 2018 Gold Coast and 2022 Birmingham Games, and had been hoping to make it a three-peat in her home state.
“[I feel] a bit deflated this morning, it’s upsetting,” Montag told ABC Radio Melbourne.
“It’s so important for us to have the opportunity to have a home crowd. It’s expensive for friends and family to fly overseas to watch us compete and so really, it can be a once in a lifetime opportunity.”
She said that while the news was circulating in group chats between athletes, there had been no formal communication from the Australian Commonwealth Games Association.
“The athletes are a little in the dark,” she said.
Olympic beach volleyball gold medallist Natalie Cook, who is part of the Brisbane 2032 Olympics organising committee, said the cancellation was a real blow.
“Devastating for our athletes, devastating for regional Victoria which would have looked for a boost,” she said.
“We would have hoped that it would have brought tourism and economics into regional areas. I am gobsmacked, I am floored, I am disappointed for our athletes.”
No other cities have yet come forward offering to host the Games, leaving the fate of the 2026 Games in doubt.
