The Victorian Government has made the decision not to proceed with hosting the Commonwealth Games in 2026 citing high costs at over $6 billion.
With significant planning work and extensive market soundings completed, it is now certain that the cost of hosting the Regional Victorian Commonwealth Games will exceed $6 billion—more than twice the estimated economic benefit the Games would bring our state, an official press release stated.
The Government has advised the CGF and Commonwealth Games Australia (CGA) that the State will be terminating the Host Agreement.
Expressing deep regret over the cancellation, Premier Daniel Andrews said, “This was not an easy decision for us to make. We understand the disappointment this news brings to the athletes, fans, and the entire Commonwealth Games community. However, we must prioritise the financial stability of our state and focus on resolving the current crisis.
“It is our aim to reach a rapid and amicable resolution of all contractual matters, including a reasonable settlement of costs incurred, to allow the CGF the opportunity to seek an alternative host city for 2026.”
The outstanding project team, led by Organising Committee Chair Peggy O’Neal, Victoria 2026 Commonwealth Games CEO Jeroen Weimar, and Office of the Commonwealth Games CEO Allen Garner, has worked tirelessly on a detailed business and cost plan to stage the Games across regional Victoria. Their efforts have been aimed at delivering lasting benefits in housing, tourism, and sporting infrastructure for the region, Andrews said.
Fortunately, the decision not to proceed with the Games was made before any major building and supply contracts were signed, resulting in relatively contained costs incurred to date. Once negotiations are complete, these costs will be publicly disclosed, he added.
To ensure that regional Victoria still reaps the benefits that would have been facilitated by the Games, the Victorian Government has committed to a comprehensive $2 billion package. This package will go towards various initiatives, including housing, tourism, and sporting infrastructure.
Recognising the importance of housing in the state, the government will provide a new $1 billion Regional Housing Fund. This fund will facilitate the construction of over 1300 new homes across regional Victoria, with a mix of social and affordable housing. Collaboration with councils, regional partnerships, and local communities will determine the appropriate stock mix and locations for each region.
In support of the regional economy, a new $150 million Regional Tourism and Events Fund will be established. This fund aims to enhance the regions by introducing new events, attractions, and additional accommodation.
All the planned permanent new and upgraded sporting infrastructure projects, originally intended for the Games, will still be carried out as planned. This includes the construction of a new Aquatic Centre at Armstrong Creek, a 6-court indoor stadium at Waurn Ponds, upgrades to Eureka Stadium in Ballarat to accommodate 10,000 spectators, a new community sporting facility at Miners Rest, upgrades to Bendigo Stadium, BMX trails in Shepparton, Gippsland Sports and Entertainment Park, Ted Summerton Reserve in Moe, and more.
Rather than building temporary facilities for the Games, the focus will now shift towards constructing the final form of these projects to expedite the delivery of legacy outcomes. This means that locals will gain access to new and upgraded venues much sooner than they would have under the Games timeline.
Aside from the daily benefits these facilities will provide to regional Victorians, they will also open up opportunities for hosting large-scale events and performances outside of Melbourne. The government remains committed to prioritizing local businesses and job creation in these investments.
Recognising the importance of community sport in regional areas, a new $60 million Regional Community Sport Development Fund will be established. This fund will support new projects such as aquatic centres, indoor stadiums, lighting upgrades, and walking and cycling paths in regional communities across Victoria.
Additionally, there will be a $40 million All Abilities Sport Fund dedicated to breaking down barriers for people with disabilities to participate in sports. This fund will provide grants, scholarships, and mentoring programs to ensure inclusivity and equal access.
Further details of the $2 billion regional package will be unveiled after consultations with sporting codes, councils, tourism bodies, and the community. These consultations will ensure that the investments align with the needs and aspirations of the various stakeholders in regional Victoria, the release added.
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