Victoria state’s shock axing of 2026 Commonwealth Games cheered in Australia as living costs surge

The budget for the games has ballooned to A$6 billion (US$4 billion) – and would be double the estimated economic benefits to Victoria state

Some proponents of the games say the new estimates are a ‘gross exaggeration’, while others say hosting the event was a plan ‘flawed from the start’

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Australia’s Victoria State has decided not to host the 2026 Commonweatlh Games due to concerns over the cost of putting on the event. Photo: Reuters

Published: 7:53pm, 19 Jul 2023Updated: 8:36pm, 19 Jul 2023

The shock cancellation of the 2026 Commonwealth Games in Australia’s Victoria state, owing to a budget blowout that more than doubled original cost estimates, has received domestic approval amid surging living costs but left athletes from participating nations in limbo.

Victoria State Premier Dan Andrews’ decision on Tuesday not to host the 2026 event stunned the sporting world and infuriated major organising bodies, including the Commonwealth Games Federation (CGF), as higher-than-expected costs in logistics and possibly construction made it impossible for officials to deliver the event on budget.

This Week in Asia reached out to participating nations in the region, including Bangladesh, India, Malaysia, Pakistan and Singapore, but did not receive any responses at the time of publication about the impact that the move would have on their athletes.

Victorian state Premier Daniel Andrews speaks to media after his government withdrew as host of the 2026 Commonwealth Games because of a blowout in projected costs. Photo: AP

Since Victoria state was appointed host last April, the budget for the games has ballooned to more than A$6 billion (US$4 billion) from an original A$2.6 billion – and the costs would be double the estimated economic benefits to the state.

The state will continue to fund housing and world-class sporting facilities promised as part of the games, mainly A$2 billion on facilities and A$1 billion on affordable housing, even as it pulls out of the event.

Premier Andrews said the state government would soon provide an “accounting” for the blowout, as questions emerge whether it was due to poor budgeting on a complex and untested multi-city model where various regional towns would be used to host events, or if the costs were hit by inflation.

At the time of the bid in early 2022, the consumer price index for Australia stood at about 3.5-5 per cent. Today, it is 7 per cent.

Victoria state’s shock axing of 2026 Commonwealth Games cheered in Australia as living costs surge

The budget for the games has ballooned to A$6 billion (US$4 billion) – and would be double the estimated economic benefits to Victoria state Some proponents of the games say the new estimates are a ‘gross exaggeration’, while others say hosting the event was a plan ‘flawed from the start’