Federal budget 2023: Brisbane will be able to start spending on the Olympics but it’s a red flag for Daniel Andrews’ games

The Olympics and a new AFL stadium in Tasmania get the go-ahead but Victoria has been promised nothing for its 2026 Commonwealth Games.

Victorian Premier Daniel Andrews. With Victoria facing a cliched horror budget this month, the federal budget is silent on the contribution to the Commonwealth Games, which loom large on the horizon. Picture: NCA NewsWire / Valeriu Campan

More than $1bn has been committed to the 2032 Brisbane Olympic Games and $240m set aside for the precinct to house Hobart’s new AFL stadium, but debt-addled Victoria has been promised nothing for the 2026 Commonwealth Games.

The Albanese government allocated more than $1bn of its $3.4bn commitment to the Olympics in the budget, with payments rising steadily until more than $580m is promised in 2026-27.

This includes the capped investment of up to $2.5bn for the development of Brisbane Arena and a further $935m for the capped investment towards 16 new or upgraded other venues.

The government has also earmarked $240m to “help unlock the potential of the Macquarie Point precinct” in Hobart and a further $65m for a stadium redevelopment in Launceston.

But with Victoria facing a clichéd horror budget this month, the federal budget is silent on the contribution to the Commonwealth Games, which loom large on the horizon. The Games will cost at least $2.6bn to host and the Victorian government expects half to be funded by Canberra, most to go towards infrastructure.

2026 Victorian Commonwealth Games complex to host

The government said it was in discussions with Victoria and would make an announcement later but there are concerns within the Andrews government that a limited contribution would even further undermine the state’s finances.

The planned Victorian Games are expected to be more complex to hold because of Labor’s insistence on running the competitions mainly in regional areas.

This has posed significant extra budget pressures, despite Melbourne already having some of the world’s best sporting assets.

The Games will require multiple athlete villages and improved regional public transport.

The Commonwealth Games are a key part of state Labor’s re-election strategy in 2026 because they include a string of seats it wants to hold.

Federal Infrastructure Minister Catherine King also announced in the budget the expected 90-day review of the nation’s investment pipeline, including new measures for Australia’s cities and suburbs.

“A 90-day independent review of the infrastructure investment program will ensure that we are investing in projects that are truly nationally significant,” she said.

“To make sure that freight keeps moving, that people can get home safely from work and that the connections between our cities and our regions are strong.

“Under the Liberals and Nationals, the number of infrastructure projects in the pipeline blew out from 150 to almost 800.

“Projects were left without adequate funding, resources or genuine commitment. The Albanese government is keeping the $120bn rolling 10-year pipeline – and every dollar remains in the budget.

“But it would be irresponsible to move ahead, without fixing the backlog. This review will allow all levels of government time to consider the projects that are actual priorities, and assess their cost and deliverability in the current climate.”

Ms King’s home town, Ballarat, will play a key role in the Commonwealth Games, with a planned overhaul of the city’s main sporting stadium and of the train services, and a planned athletes village.

The Andrews government believes Ms King’s close association with Ballarat will mean Canberra will have to make a significant investment in the state’s third-biggest city.

However, nearby Geelong is also crucial, as the local council faces significant budget pressures.