Bureaucrats and consultants behind the now-cancelled 2026 Commonwealth Games failed to account for basic cost factors, according to a Victorian inquiry. 

The oversights were a significant contributor to the event's cancellation after projected costs soared from $2.6 billion to over $6 billion.

The Victorian government initially agreed in April 2022 to host the Games across various regional hubs. 

However, by July 2023, the government withdrew its commitment due to the dramatic escalation in estimated costs. 

The inquiry revealed that the business case, developed by the Department of Jobs, Skills, Industry and Regions (DJSIR) with estimates provided by Ernst & Young (EY), was fundamentally flawed and insufficient for making an informed decision.

Auditor-General Andrew Greaves criticised the business case, stating it was based on “desktop research” that looked at the costs of previous Commonwealth Games. 

This approach was deemed inadequate given the unprecedented multi-city model and the compressed timeframe for delivering the event. 

The research failed to consider several critical inputs, leading to significant gaps in the analysis.

Ana Delevska, a lecturer at Melbourne Polytechnic and one of the authors of an independent case study on the failed Games, testified that the business case was lacking in essential aspects. 

“If a student submitted this as an assignment, missing these aspects, they would fail,” Delevska remarked, highlighting the fundamental shortcomings of the analysis. 

“It doesn’t take a genius to realise there were big omissions that should have really been taken into consideration because otherwise we wouldn’t be here today.”

The independent research identified key factors that were overlooked in the planning, including infrastructure needs, federal funding, transport options, accommodation, and security. 

Experts also said that the financial projections were not realistic from the outset.

While some warned that the cancellation could potentially damage Victoria's reputation as an international events hub, others note that no evidence of such an impact has yet emerged. The Commonwealth Games Federation has yet to find a replacement host for the 2026 event, despite its previous commitment to announce one by May 2023. 

The Auditor-General’s report is accessible in PDF form, here. Submissions to the inquiry are accessible here.