Why Victoria's Commonwealth Games have been cancelled

The Victorian 2026 Commonwealth Games will be cancelled due to funding issues.

The reason behind the move is down to finances. 

The rights to host the 2026 event were awarded to regional Victoria last year after Birmingham replaced South Africa’s Durban as host of the 2022 games. 

Victoria’s net debt of $116.7billion for this financial year is more than the combined net debt of New South Wales ($78.4billion), Queensland ($14.5billion), South Australia ($19billion) and Tasmania ($2.994billion). 

Western Australia’s net debt has fallen by $16billion to $27.9billion during the past six years, as surging iron ore royalties helped pay for the Covid disruption. 

Victorian Premier Daniel Andrews announced his government would no longer support the games because it was clear the cost would exceed $6 billion. 

‘What’s become clear is the cost of hosting these games is not the 2.6billion which was allocated, it is at least $6billion or $7billion,’ he said. 

‘I will not take money out of hospitals and schools in order to fund an event that is three times the cost as estimated and budgeted for last year.’ 

Victoria has cancelled hosting the 2026 Commonwealth Games due to money woes

The Commonwealth Games has never been cancelled before, except for in World War Two. 

Mr Andrews said during his time in office he has made many difficult decisions. 

‘This is not one of them,’ he told reporters on Tuesday. 

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‘Frankly, $6 to $7 billion for a 12-day sporting event, we are not doing that. That does not represent value for money. That is all cost and no benefit.

‘We are not going to spend $6 to $7billion hosting a 12 day sporting event.’ 

The premier said delivering the Commonwealth Games ‘at any cost’ would take money out of the state’s hospitals, schools and roads. 

It is unclear how much it will cost Victoria to break the contract. 

The Commonwealth Games were set to be held from March 17 to 29 in Geelong, Bendigo, Ballarat, Gippsland and Shepparton. 

Promotional material said: ‘Victoria 2026 will showcase what makes the people of our state tick: our unity, our diversity, our sense of community, our welcoming attitude and our love of sport.’ 

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Victorian Premier Daniel Andrews (pictured on Tuesday) announced his government would no longer support the games because it was clear the cost would exceed $6 billion

Team Australia pose with their medals after the men’s final hockey match at the Commonwealth Games in Birmingham, England, Monday, August 8, 2022

Commonwealth Games staff were reportedly called in for an urgent meeting early on Tuesday.

There was an emergency meeting of the government’s Expenditure Review Committee – senior ministers who discuss budget decisions – on Monday.

The full proposal was taken to the Cabinet late last night.

Victorian Treasurer Tim Pallas had been seeking a dollar-for-dollar matching contribution from the federal government. 

More to come.