The Victorian Government has officially declared its intention to withdraw from its hosting agreement with the Commonwealth Games Federation for the upcoming 2026 Commonwealth Games.
Premier Daniel Andrews, while making the announcement yesterday, highlighted a significant surge in hosting expenses. Originally budgeted at $2.6 billion, the costs have now skyrocketed, exceeding $6 billion.
This substantial increase in expenditure has prompted the government to reconsider its commitment to hosting the event.
Mr Andrews called the $6 billion figure “just too much”.
“Locals have told us that more places to live and more places to stay across regional Victoria is what really matters – so that’s exactly what we’ll deliver,” he said.
The government has confirmed it will utilise the budgeted funds to deliver a new $2 billion regional package. While the full details of the package are being worked through with stakeholders, it will include:
- A new $1 billion Regional Housing Fund to deliver 1300 new homes across regional Victoria, including social and affordable housing, on top of the Big Housing Build program and ahead of the Victorian Government’s Housing Statement to be delivered in September
- The completion of all planned new and upgraded permanent sporting facilities that were intended for the Games, including the Eureka Stadium upgrade in Ballarat, construction of a new aquatic centre in Armstrong Creek and a range of other upgrades in the Games hubs in Geelong, Ballarat, Bendigo, Shepparton and Gippsland
- A $150 million Regional Tourism and Events Fund to support events, attractions and accommodation
- Various funds to support the development of community sport in regional Victoria.
“Our members have been heavily engaged in preparation for the Games and have been enthusiastically supporting the Victorian Government in delivering what would have been a historic event for Victoria.
“We look forward to seeing more details from the Victorian Government on proposed support for companies financially impacted by their decision today.
“Steps need to be taken to sure up Victoria’s international reputation at a time when investment certainty in the State is under pressure.”
The Commonwealth Games Federation said the decision was “hugely disappointing”.
Further detail of the $2 billion regional package will be revealed after consultation with sporting codes, councils, tourism bodies and the community.