Taxpayers left with a $380m bill for axed Commonwealth Games

An outspoken mayor with Commonwealth Games experience has furiously unleashed on the Victorian government, which has been forced to fork out $380m for the botched games.

A Queensland mayor with Commonwealth Games aspirations has unleashed on the Victorian government after taxpayers were left with a whopping $380 million bill following negotiations over the cancelled Commonwealth Games were finalised.

The Andrews government confirmed on Saturday morning that is had reached the immense figure following negotiations with the Commonwealth Games Federation and Commonwealth Games Australia.

All disputes over the cancellation of the games have now been settled.

“In July 2023 the Victorian Government announced its decision to withdraw from hosting the 2026 Games,” a joint statement said.

“Following that decision, the affected parties have been involved in confidential good faith negotiations.”

Premier Daniel Andrews said he did not regret his decision to cancel the games. Picture: Jason Edwards

“All parties engaged respectfully and made appropriate concessions in order to reach an agreement.

“The State of Victoria has agreed to pay the Commonwealth Games parties (CGF CGFP and CGA) AUD $380 million.

“The parties also agreed that the multi-hub regional model was more expensive to host than the traditional models.”

The statement went on to say that the settlement was “supported by the mediators” and that the terms of the arrangement will “otherwise remain confidential”.

The settlement finalises all matters between the parties.

Costs to host the 2026 Commonwealth Games had reportedly risen to $7 billion. Picture: Supplied

Following the decision to cancel the games, former New Zealand Judge Kit Toogood, KC, and the former Chief Justice of the WA Supreme Court, Wayne Martin, KC, were appointed as joint mediators.

The Victorian Premier Dan Andrews shocked the world by ripping up the contract for the international sporting event back in July after internal figures estimated the cost of staging the event had risen to $7bn.

At the time, the Premier said he had made “a lot of difficult decisions in this job,” but cancelling the games was “not one of them”.

Premier Daniel Andrews on Saturday said the Games settlement meant the government could proceed with building houses in regional Victoria.

He said the $380m settlement was the best outcome and that challenging a “break fee” would have risked a lawyers’ picnic.

“And who knows what the ultimate number would have been.

Victorian Premier Daniel Andrews said the move meant the state could focus on delivering ‘thousands of homes’. Picture: NCA NewsWire / Andrew Henshaw

“Who knows who wins and who loses in these sorts of matters, together with the inevitable appeals and appeals on appeals,’’ he said.

“We can focus on delivering thousands of houses and other sporting infrastructure across regional Victoria.’’

Outspoken Gold Coast Mayor Tom Tate threw his hat in the ring to host the axed Games, claiming the city “has the facilities and the legacy” to make it work, but the Queensland Government did not support his bid.

He told news.com.au on Saturday “every Australian should be outraged by the loss of $380 million of taxpayers’ funds.”

“That money has been burnt with zero return. Worse, our nation’s reputation across the Commonwealth has been tarnished,” he said.

Gold Coast Mayor Tom Tate said every Australian should be ‘outraged’. Picture: Glenn Campbell

“From a business and contractual perspective, Australia is no longer seen as ‘good for its word’ and that will cost us billions in future trade agreements and international goodwill. 

“We can save some of the reputation damage by resurrecting the 2026 Games, with the Gold Coast and Perth both interested in a joint 2026 event. 

“I have written to Federal Sports Minister Anika Wells asking that we are allowed to put to the federal government a business proposal that shows we can host the games. 

“We only require approval, at this stage, to present our business model, leveraging the same federal funds the Commonwealth was going to allocate to Victoria. I await a positive response from the minister.”

Deputy Victorian Liberal leader, David Southwick labelled the move a “debacle that has smashed Victoria’s reputation on the world stage”.

Deputy Victorian Liberal leader David Southwick labelled the move a ‘debacle’. Picture: NCA NewsWire / Andrew Henshaw

“Victorians will pay at least $380 million for an event that will never happen,” he told news.com.au. 

“We are likely to never know the true cost of this debacle because the the Andrews Government will do everything it can to stop Victorians finding out the truth.

“Its costings of the Games under Labor’s model are woefully inadequate and another exercise in cynical spin by the Andrews Government.”

On Twitter, Mr Southwick blasted the “disgusting” decision to reveal the news on a Saturday. 

“$380M to cancel the Cth Games contract is the tip of the iceberg and doesn’t begin to cover the damage to our international reputation. Not to mention taking out the trash on a Saturday to avoid scrutiny. Disgusting,” he wrote.

Social media exploded on Saturday morning with heated reactions from infuriated taxpayers over the news.

Victoria to pay $380 million compensation for cancelling 2026 regional Commonwealth Games

(Another lazy $380 million of scarce taxpayers’ funds entirely wasted. It would be nice if governments did proper due diligence before committing taxpayers to fund things #springst#auspol)

— Andrew Laird (@ReclaimAnglesea) August 18, 2023

“Another lazy $380 million of scarce taxpayers’ funds entirely wasted,” Victorian barrister Andrew Laird wrote on X (formerly Twitter).

“It would be nice if governments did proper due diligence before committing taxpayers to fund things.”

“Victoria govt to pay $380 million compensation for scrapped Commonwealth Games,” another user wrote.

“Whoa. That is a lot of money to throw away when there is a homelessness crisis.”

“Dan Andrews again wasting our money,” one shared.

“How are we paying $380m to not host the games?”

More to come.