Why have the Victorian Commonwealth Games been cancelled?

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

The reason behind the move is due to finances.

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

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

Western Australia’s net debt has fallen by $16bn to $27.9bn over the last six years as rising iron ore royalties helped pay for the Covid disruption.

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

“What became clear is that the cost of hosting these games is not the $2.6 billion that was allocated, it’s at least $6 or $7 billion,” he said.

“I will not take money from hospitals and schools to fund an event that is three times the estimated and budgeted cost for last year.”

The Commonwealth Games have never been canceled before, except for World War II.

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

“This is not one of them,” he told reporters on Tuesday.

“Frankly, $6 to $7 billion for a 12-day sporting event, we’re not doing that. That does not represent good value for money. That’s all cost and no benefit.

“We’re not going to spend $6-7 billion putting on a 12-day sporting event.”

The prime minister said holding the Commonwealth Games “at any cost” would take money from the state’s hospitals, schools and roads.

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

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

The promotional material read: ‘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 the sport.’

Victorian Premier Daniel Andrews (pictured Tuesday) announced that 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 hockey final game at the Commonwealth Games in Birmingham, England on Monday, August 8, 2022.

Commonwealth Games staff were reportedly summoned for an urgent meeting early 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 brought to Cabinet late at night.

Victoria’s treasurer, Tim Pallas, had been seeking a dollar-for-dollar matching contribution from the federal government.

More to come.