- The Victorian Commonwealth Games were originally budgeted for $2.6B.
- Costs are now estimated to be a minimum of $6B, and as high as $7B.
- A $2B regional package was announced.
Premier Daniel Andrews announced this morning that Victoria will not host the 2026 Commonwealth Games.
At a press conference, Andrews said that the cost has blown out beyond the budgeted $2.6 billion.
“It’s not $2.6 billion, it is in fact at least $6 billion and could be as high as $7 billion.”
Premier Daniel Andrews
“I cannot stand here and say to you that I have any confidence that even that $7 billion number would appropriately and adequately fund these games; I think it could be more than that,” added Andrews.
“They are what our market soundings, consultations with industry, all of our pre-tender work tells us.
“$6 to $7 billion is well and truly too much for a 12 day sporting event.”
The cost of hosting the games was noted as more than twice the estimated economic benefit the event would bring to the state.
$1B boost to regional housing
In lieu of the games, Andrews announced a $2 regional package that will benefit community sport, tourism, and more.
The package includes a $1 billion boost to support affordable and social housing across regional Victoria. Andrews added this will not just be in hub cities.
Andrews added that there will be at least 1,300 new homes constructed across regional Victoria.
“[This is a] direct response to what is perhaps the biggest challenge across regional Victoria, and indeed across our state, and that is the supply of housing and the number of housing options that Victorians have before them.
“That is in many respects the biggest and best lasting legacy that we can leave – somewhere to live and a market that has more supply for those who need it.
“So, in essence, when you add up all of, not the estimates, but the actuals, all the contemporary work that’s been done with builders, with those who provide services all of those who would contribute to running the Commonwealth Games in 2026, the cost is not $2.6 billion, as estimated by senior departmental officials, external consultants, the government, as well as Commonwealth Games authorities, it is in fact at least $6 billion, and could be as much as $7 billion.
Council to Homeless Persons has come out in support of the $1 billion package, with CHP CEO, Deborah Di Natale, saying: “The Andrews Government has been clear about the social housing legacy it was intending to deliver from the Commonwealth Games.”
“With the Games no longer going ahead, it was absolutely critical a commitment to build regional social housing remained on the table.”
Deboarh Di Natale, Council to Homeless Persons CEO
Di Natale recounted the dire circumstances seen across the regional Victorian rental sector, with the cost of renting soaring and vacancy rates at very low levels.
“That’s a perfect storm pushing more people into homelessness,” said Di Natale.
“This is a statewide crisis so it’s really important to see the new social housing commitment extend beyond the four regional hubs that would have hosted the Games.”
The Community Housing Industry Association Victoria has also welcomed the $1 billion package, with CHIA Vic acting CEO Jason Perdriau saying the housing boost will have a lasting impact.
“This investment will be life-changing for the many regional Victorians who are in hardship as a result of the housing crisis,” Perdriau said.
“The Regional Housing Fund will deliver homes that are desperately needed. We know more than 36,000 households in regional Victoria are experiencing homelessness, housing stress or living in overcrowded homes – additional social and affordable housing will make a difference.
“Investment in social housing is an investment in the economic prosperity of Victoria. Safe, stable, affordable housing can ease the pressure placed on our hospitals, judicial system and community services, and improve the liveability of our suburbs.
“This $1 billion boost complements the Victorian Government’s historic $5.3 billion Big Housing Build program, as well as the Federal Government’s recently announced Social Housing Accelerator that committed $496 million to the state.
“Today’s announcement comes as the Victorian Government considers other major reforms to planning and housing supply. This provides a critical opportunity to deliver a long-term plan and investment pipeline for social and affordable housing that spans electoral and economic cycles and creates a fairer housing system for all Victorians,” said Perdriau.
