Scrapped 2026 Commonwealth Games cost Victoria $589 million in ‘significant waste of taxpayer money’

The scrapped 2026 Commonwealth Games cost the Australian state of Victoria more than $589 million, the auditor general said, in a report that called the project a “waste of taxpayer money” with “no discernible benefit”.

The report investigated the state government’s shock cancellation of Games last year and found the cited $6.9 billion cost blowout was “overstated”.

The scathing report said the waste of taxpayer money could have been avoided if the government agencies had worked together to give “frank and full advice” before the government decided to host the games.

The report was also critical of the business case for the event, prepared by the Department of Jobs, Skills, Industry and Regions (DJSIR), saying it was inadequate to support an informed decision on the costs and benefits of hosting.

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When pressed in the Parliament about the finding that the cost blowout was overstated, premier Jacinta Allan pointed to the response of the Department of Premier and Cabinet (DPC) and the Department of Treasury and Finance (DTF) who disagreed with the auditor general’s finding. Allan further said the "accurate total cost" could not be provided due to ongoing risks.

“The $6.9bn figure was the upper estimate of the costs that they anticipated would be needed to deliver the game,” Allan said.

“Today confirms that the government made the right decision to not proceed with a 12-day sporting event because the costs were far exceeding any benefit.”

The state auditor general said the cost of the cancellation was considerable given Victoria’s rising debt levels. “This waste of taxpayer money on an event that will not happen is significant,” the report said.

Victoria pulled out as hosts of the 2026 Commonwealth Games in July last year, citing cost overruns from the initial estimate of $2.6 billion to between $6-$7 billion.

The state government had previously revealed that it agreed to pay Commonwealth Games bodies $380 million in compensation for the pull out, with the former premier Daniel Andrews calling it as the “best outcome” for the state.

The report said other expenditures included $112 million for employee and operating costs, $38 million for the organising committee and $42 million for detailed planning of the venues and villages.