Commonwealth Games funding debate: Federal Infrastructure Minister Catherine King says ‘the issue will be around legacy’

There are no guarantees Victoria will benefit from an infrastructure cash splash ahead of the 2026 Commonwealth Games, with the federal government hinting at key conditions.

Federal funding for the 2026 Commonwealth Games could be contingent on athletes villages becoming social and affordable housing, Infrastructure Minister Catherine King says.

The clock is ticking for the state government, which is yet to put in a detailed pitch for funding, as the Albanese government’s May budget looms.

And there are no promises that an infrastructure cash splash is on the cards for Victoria, despite having $1bn ripped out of Coalition-promised projects last October.

Daniel Andrews is understood to have written to Anthony Albanese about funding for the Commonwealth Games.

But Ms King said: “We haven’t got a detailed ask on the table yet”.

Federal Infrastructure Minister Catherine King says federal funding for the Commonwealth Games could be contingent on housing plans. Picture: Dan Peled

“We’re awaiting that at the moment,” she said.

“I think largely the issue will be around legacy for us, particularly in terms of the athletes villages and what legacy that might leave around social and affordable housing. But again I don’t have anything before me.”

The state government has already flagged that the games will “leave a legacy of housing” for regional communities, with around 7000 athletes and officials to stay in Ballarat, Bendigo, Geelong and Morwell.

Ms King, the member for Ballarat, confirmed she would have to recuse herself from funding decisions about proposals that would benefit her electorate.

Victoria had around $1bn of infrastructure projects canned in the October federal budget after Labor’s waste and rorts audit found they were underfunded.

Asked if Victorians would be happier this budget, Ms King said every jurisdiction claimed they were not getting their fair share, which meant “we probably have our calibration right in terms of the infrastructure investment”.

She also ruled out announcing new infrastructure funding in the Liberal-held seat of Aston before the April 1 by-election.

The Liberals have been using the federal government’s decision to scrap projects in the electorate as ammunition ahead of the poll.

But Ms King rejected claims Labor was disinterested in the seat, saying the government had been left with a trillion dollars of debt and growing costs from the National Disability Insurance Scheme and social security payments.

She said it would have cost $3.3bn to build the now axed Wellington Rd, Dorset Rd, Napoleon Rd and Monash rail projects.

“It is just not realistic in the current budget context – and that is just one seat,” Ms King said.

“Everyday there are fantastic and great proposals being put forward by colleagues but I have a role to play to make sure our budget and pipeline is sustainable.”

The state government was contacted for comment.

‘We can’t afford it’

Regional councillors have expressed concern that they could struggle to contribute to the 2026 Commonwealth Games amid fears of cost blowouts.

The state government’s last budget committed $2.6bn to ensuring Geelong, Ballarat, Bendigo, Shepparton and Gippsland would all be equipped to host the multi-town games.

But there is growing council concern about building infrastructure due to rising costs of materials and labour as well as pressures in areas of their own budgets.

Some fear these factors could limit councils’ capacity to make their own investments to deliver the Games – and Geelong deputy mayor Anthony Aitkens says exemptions on rate rise caps might have to come as the solution.

“This is a once in a lifetime opportunity for the council and the community – but our latest financial results do indicate, sadly, at this point in time we can’t afford it,” Mr Aitken said at council meeting Tuesday night.

Geelong’s deputy mayor has warned his council may not be able to afford hosting the Games. Picture: Supplied

“Council may have to actually borrow funds to spread the costs associated with the Commonwealth Games across future generations.

“At some stage we will have to look at rate capping. Councils may need to … put a proposition to the state government that we do need to seek an exemption from the rate capping to actually pay for our contributions towards the games.”

Rate cap exemptions have not been seen as a solution by councillors in other hosting areas Ballarat and Bendigo.

Ballarat mayor Des Hudson told the Herald Sun his council viewed the Games as a separate pursuit that came with its own set of challenges.

But Mr Hudson warned Ballarat would be reluctant to fund any blown out infrastructure costs as it prioritises other community projects.

A concept image of a Commonwealth Games facility, giving a glimpse of the legacy infrastructure on offer.

“It’s a great opportunity with what we’re getting with some of the infrastructure upgrades, but there shouldn’t be any expectation that councils would fund a shortfall for any of the projects in the delivery,” Mr Hudson said.

“We’ve not had that discussion, but there would be a reluctance from us when we’ve had lots of other community projects and priorities in the best interests of our ratepayers.”

Bendigo Commonwealth Games director Andrew Cooney said his council would need to commit its own investments but is confident it can afford to do so.

Mr Cooney added the focus on legacy infrastructure meant that investment was worthwhile.

“We are really grateful and excited. We know there’s going to need to be some (council) investment (but) we’ll work through that.

“I get that this is an issue, but this is going to be an amazing experience for regional Victorians. We think that investment will pay back for many years to come.”

Shepparton mayor Shane Sali said hosting presented an “evolving situation” but emphasised his council had no Games-related concerns at this point.

“As for any infrastructure or investment for any piece that has to do with the Commonwealth Games, we’re always liaising with the state government in regards to what needs to be done,” he said.

“We’ll continue to do all we can to make this an unbelievable experience.”

The state opposition has called on the government to reassure the Geelong community about delivering the Games.

“Daniel Andrews must work with the Geelong community to ensure the Games, and all the economic and social benefits they will bring, can go ahead in this important part of our state,” deputy opposition leader David Southwick said.

Opposition spokesman for tourism, sport and events Sam Groth added: “Geelong needs certainty that its role in delivering these games isn’t at risk.”