Victoria's Auditor-General says the state government overstated the cost estimates used to scrap the 2026 Commonwealth Games. 

The abandoned event has left taxpayers with a bill exceeding $589 million, according to the report, sparking fierce criticism from various quarters.

The Auditor-General's investigation found that former Premier Daniel Andrews and his successor, Jacinta Allan, cited an inflated figure of $6.9 billion as the reason for cancelling the event last July, while the actual cost at the time was significantly lower, at $4.86 billion.

The Department of Premier and Cabinet had added $2 billion in “additional cost pressures” without specific allocations, leading to misleading public statements about the event's financial viability.

Andrew Greaves, the Auditor-General, criticised the expenditure on an event that will not proceed, highlighting the significant financial burden this decision has placed on the state, especially given Victoria's current fiscal challenges. 

“The decisions to bid for, plan and then withdraw from the Games have cost Victoria over $589 million with no discernible benefit,” Greaves stated.

Opposition figures and Commonwealth Games Australia (CGA) have slammed the Labor government for its handling of the Games. 

Sam Groth, the opposition spokesperson for tourism, sport, and events, accused Labor of playing politics with the state's reputation for its gain. 

CGA Chief Craig Phillips lamented the missed opportunity, criticising the government's disregard for advice to alter the delivery model of the event.

Despite the findings, Premier Jacinta Allan has defended the decision to cancel the Games, arguing that escalating costs far outweighed the potential benefits. She says the government had acted on advice from central agencies, standing by the decision as necessary and prudent.

The report also detailed the inadequacies in the initial business case for the Games, highlighting underestimated costs and overstated benefits. 

It criticised the lack of cooperative effort among agencies, which could have provided more accurate advice to the government before committing to host the Games. 

The report revealed that the state agreed to pay $380 million to settle the cancellation of the host contract with Commonwealth Games bodies.

The full report is accessible here.

The Malaysian government has rejected a request to host the Games after the Gold Coast scrapped its bid late last year, raising the possibility that the next Commonwealth Games simply will not occur.