Canceling the 2026 Commonwealth Games cost Victoria $589 million in ‘significant waste of taxpayers’ money’ – Firstpost
The scathing report claims the waste of taxpayers’ money could have been avoided if government agencies had worked together.
The abandoned 2026 Commonwealth Games cost the Australian state of Victoria more than $589 million, the auditor general has said, in a report that calls the project a “waste of taxpayers’ money” with “no benefit perceptible”.
The report investigated the state government’s shock cancellation of the Games last year and concluded the $6.9 billion cost cited was “overestimated”.
The scathing report claims the waste of taxpayers’ money could have been avoided if government agencies had worked together to give “frank and comprehensive advice” before the government decided to host the games.
The report also criticized the business case for the event, prepared by the Department for Jobs, Skills, Industry and the Regions (DJSIR), saying it was insufficient to support an informed decision on the costs and benefits of hospitality.
Asked in Parliament about the conclusion that the cost explosion was overestimated, Prime Minister Jacinta Allan pointed to the response of the Department of Prime Minister and Cabinet (DPC) and the Department of Treasury and Finance (DTF) which were in disagreement with the Auditor General’s conclusion. Allan further said the “precise total cost” could not be provided due to ongoing risks.
“The $6.9 billion figure was the upper estimate of the costs they anticipated would be needed to deliver the game,” Allan said.
“Today confirms that the government made the right decision not to hold a 12-day sporting event because the costs far outweighed any benefits.”
The state’s auditor-general said the cost of the cancellation was considerable given Victoria’s growing debt levels. “This waste of taxpayer dollars on an event that will not take place is significant,” the report said.
Victoria withdrew from hosting the 2026 Commonwealth Games in July last year, citing cost overruns compared to the original estimate of $2.6 billion, which was between $6 and $7 billions of dollars.
The state government previously revealed it had agreed to pay $380 million to Commonwealth Games bodies in compensation for the withdrawal, with former premier Daniel Andrews calling it a “best outcome” for the state.
The report said other expenses included $112 million for personnel and operational costs, $38 million for the organizing committee and $42 million for detailed venue and village planning.
