The business case for the 2026 Commonwealth Games reveals the Andrews government was preparing to waste up to 30¢ for every $1 invested when it signed up to host the event.
The best-case scenario estimated a return of 60¢ for every $1 spent.
Marion Terrill, the transport and cities program director at the Grattan Institute think tank, said on Monday that given the business case, she was surprised the government forged ahead. RMIT Emeritus Professor David Hayward said the analysis also appeared to downplay the pricetag by counting government funding streams as revenue rather than as a cost.
The analysis also relied on $228 million to $352 million worth of benefits for “avoided health costs and reduced productivity costs from increased physical activity”, and between $46 million and $97 million for “consumer surplus”: when the cost of a product is lower than the consumer is willing to pay. The business case also assumed the Games would bring an extra 1 million tourists to regional Victoria between 2022 and 2030.
Andrews on Saturday said the original analysis represented “strong value for money, more benefits than costs”.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Commonwealth Games ‘never stacked up’, business case showsThe business case for the 2026 Commonwealth Games reveals the Andrews government was preparing to waste up to 30¢ for every $1 invested when it signed up to host the event.
Read more »
Warnings about Commonwealth Games costs were there from the startThe business case the Victorian 2026 Commonwealth Games show there were some early red flags about how the now-cancelled event was costed.
Read more »
Victorian government tight-lipped on Commonwealth Games timelineIt comes days after Premier Daniel Andrews revealed taxpayers would pay $380 million in costs for the cancelled games.
Read more »
Games could have been as good as World CupReaders discuss the cost of cancelling the Commonwealth Games.
Read more »
Victoria banked on getting $200m in federal funding when it bid for GamesThe Andrews government assumed it would receive more than $200 million in federal funding when it bid for the 2026 Commonwealth Games, despite not discussing it with the federal government first.
Read more »