The Regional Games were scrapped after the revised cost of hosting the event increased from about $2.6 billion to $6 billion, according to the State Government.

A metropolitan Games has been ruled out and no other replacement has been announced yet. It is unlikely another Australian State will bid for the event at this stage.

An initial $2 billion funding package that would have been facilitated by the Games has been pledged towards regional, tourism and housing initiatives.

According to the State Government, “It is our aim to reach a rapid and amicable resolution of all contractual matters, including a reasonable settlement of costs incurred, to allow the CGF the opportunity to seek an alternative host city for 2026.

“We’re able to make this decision not to proceed before any major building and supply contracts have been signed, meaning costs incurred to date have been relatively contained. Those costs will be publicly disclosed once negotiations are complete.

“The main reason we agreed to host the Games was to deliver lasting benefits in housing, tourism and sporting infrastructure for regional Victoria.”

Further detail of the $2 billion regional package will be revealed after consultation with sporting codes, councils, tourism bodies and business – including the Victorian Chamber.

The Victorian Chamber acknowledges members in Regional Victoria will be adversely impacted by the cancellation. We will continue to advocate for regional members and provide updates on new developments.

Victorian Chamber Chief Executive Paul Guerra told 3AW: “We celebrated the Games when they were announced in April last year, and we’re upset now in the same proportion.

“There was no competitor. We set the terms and conditions and set the price point, which was then accepted by the Commonwealth Games Group, and so we were awarded the games from it. It was at our discretion, and we can no longer afford it, apparently.

“We’re disappointed about it because there are so many business opportunities that are going to be lost out of this.

“The Commonwealth Games were never just about the two weeks of the Games. It was about legacy infrastructure for Victoria. It was the local business opportunities post-COVID. It was for global trade opportunities facilitated by the Games, and it was visitation before, during and after the games.

“We can’t just let that go without thinking carefully through what the impact is going to be. And sadly, globally, our reputation has taken a massive hit on this.

“We don’t want a reputation where we are ripping up contracts without thinking through them very carefully.

“Business needs certainty off the back of some strong increases in the Budget for business over the last two years. We’ve had a mental health levy, this year we’ve had a COVID debt levy and WorkCover costs have gone up as well.

“The perception is it is going to be more difficult to do business in Victoria, so business will start looking at alternatives to it.

“We’ve got to overcome that because the only way out of this is by growing. You can’t grow if there’s no business in the State.”