A damning Victorian Auditor-General (VAGO) report has confirmed the true cost and political nature of Labor's Commonwealth Games debacle.
Released today, VAGO's report, Withdrawal from 2026 Commonwealth Games, found:
- The total cost of the Commonwealth Games debacle is more than $589 million.
- The Labor Government's claimed $6.9 billion costings to withdraw from the Games were "overstated and not transparent", and double counted costs.
- Government policy decisions made in the month prior to the 2022 State Election, including additional sports and venue changes, added more than $1.1 billion to overall cost.
- The initial cost-benefit analysis used to commit to the Games underestimated the costs and overestimated the benefits.
- Departments consistently raised cost and other risks during 2022 and 2023.
In addition, VAGO found then Minister for Commonwealth Games Delivery, Jacinta Allan, knew that the "overstated and not transparent" costings to justify the withdrawal from the Games, were wrong.
Furthermore, Jacinta Allan's March 2023 request to the Commonwealth Government for $1.3 billion in funding was "unrealistic" and "understated the expected total cost of the Games".
Leader of the Opposition, John Pesutto, said: "Premier Jacinta Allan has serious questions to answer over her involvement in this debacle.
"This is a damning report that has found Premier Allan on at least two separate occasions made misleading representations about the costs and viability of the Games.
"As a consequence, Victorian taxpayers will pay at least $589 million for nothing and our international reputation as a sport and major events destination been trashed."
Shadow Minister for Tourism, Sport and Events, Sam Groth, said: "This report shows that the Commonwealth Games were just a cruel hoax to win votes in regional Victoria and have ended up costing Victorians at least $589 million.
"Labor played politics with our state's reputation for its own gain, destroying our state's reputation in the process.
"The Auditor-General has found the Labor Government knew the Games were in trouble before the last election, but continued to mislead the Victorian people and drastically overstated the costs of running the event once they knew they had to get out."
