The decision to cancel the 2026 Commonwealth Games, based on a staggering cost estimate of $7 billion, has been revealed to have been rooted in a worst-case scenario analysis conducted jointly by the event’s organizing committee and a government department. On July 18, the government made the controversial move to cancel the event, citing a drastic escalation in cost estimates, which had initially been projected at $2.6 billion but had ballooned to a potential $7 billion.
Commonwealth Games Australia had previously discredited this $7 billion figure as a “gross exaggeration,” and, until now, the origin of this cost estimate had remained undisclosed.
During the inaugural session of an upper house inquiry into the event’s cancellation, it came to light that the former premier, Daniel Andrews, had relied on this substantial $7 billion figure to justify the cancellation. However, it has been revealed that Jacinta Allan, who had assumed the role of deputy premier at the time, had received a warning from the Department of Jobs, Skills, Industry and Regions back in March. This warning stated that the costs associated with hosting the Commonwealth Games could potentially reach $4.5 billion.