How Victoria blew $600million of taxpayer money by cancelling the Commonwealth Games – as Queensland government reels from Olympics bombshell

Victoria’s mishandling of the Commonwealth Games will serve as a warning to its Queensland counterparts after recent reports that it was investigating the possibility of withdrawing from hosting the 2032 Olympics.

Brisbane is set to host the event in eight years, but politicians have faced backlash over stadium plans, which have seen an independent review propose abandoning a $2.7 billion rebuild of the Gabba Stadium in favor of the development of a new stadium with 55,000 seats. , at a cost of around $3 billion.

Queensland Premier Steven Miles rejected the controversial proposal, arguing he had hoped to find “a better value for money option”.

He added that no one “wants to see money spent on facilities that are only needed for four weeks” and was skeptical about the final cost of the project.

It was later reported that the Queensland government had discussed the possibility of withdrawing from hosting duties altogether, in a move that would send shockwaves through the sporting world.

Reports on Tuesday suggested Queensland was considering dropping out of the Olympics.

The government has denied ever considering giving up on hosting the global event, and the recent disasters surrounding Victoria’s withdrawal from the 2026 Commonwealth Games will remain fresh in the minds of politicians further north.

An auditor general on Wednesday criticized the Victorian government’s “significant waste of taxpayers’ money” following the saga, and explained exactly how Victoria lost almost $600 million…

• January 28, 2022 – Initial business case estimates cost $2.5 billion to $3 billion
• February 16, 2022 – Victoria submits exclusive bid to host the 2026 Commonwealth Games
• April 12, 2022 – Victoria wins the Games, which will be hosted in regional centers
• May 3, 2022 – The Victorian budget predicts $2.6 billion will be spent on hosting the Games
• November 26, 2022 – Labor wins national election with an overwhelming majority
• February 22, 2023 – The Games organizing committee officially requests a $722 million increase from its original $1 billion budget.
• March 2023 – The then Games Minister and now Prime Minister Jacinta Allan was briefed on revised budget estimates by the Department for Jobs, Skills, Industry and the Regions.
• April 4, 2023 – Organizing committee chair Peggy O’Neal writes to Ms. Allan to highlight critical timelines for decision-making.
• April 2023 – Government approves in principle a revised gross target budget of $3.6 billion
• May 9, 2023 – No money provided for the Games in the federal budget
• May 23, 2023 – The revised $3.6 billion budget was updated in the state budget but is not presented separately in budget documents because it was part of a “general contingency provision” .
• June 2023 – The department makes another submission to Ms Allan requesting $4.2 billion.
• June 13, 2023 – Ms Allan tells a parliamentary estimates committee that Victoria is making “tremendous progress” on the event.
• June 14, 2023 – Law firm Arnold Bloch Leibler hired as Victorian government seeks legal advice
• June 30, 2023 – The Department of Prime Minister and Cabinet Secretary Jeremi Moule holds a meeting in London with the Director General and President of the Commonwealth Games Federation.
• July 14, 2023 – Ministry’s proposed $4.2 billion budget rejected
• July 15, 2023 – Mr Moule flies from Melbourne to London
• July 17, 2023 – Victorian cabinet approves cancellation of Games
• July 18, 2023 – Then-Prime Minister Daniel Andrews announces the decision, citing estimated costs of $6 billion to $7 billion.
• August 2, 2023 – Auditor General Andrew Greaves writes to the Opposition to confirm he will examine the costs associated with securing, planning for and exiting the Games.
• August 2, 2023 – Victoria’s Upper House votes to launch a parliamentary inquiry into the fiasco
• August 19, 2023 – The Victorian Government agrees to pay Games bodies $380 million in compensation to terminate its contract and releases the revised business case costing $6.9 billion.
• March 20, 2024 – Victoria’s Auditor-General reveals the decision to bid, plan and withdraw from the Games cost state taxpayers more than $589 million with “no discernible benefit”. Its report believes the $6.9 billion cost estimate was “overestimated and lacks transparency.”