THE Victorian government will put $1 billion towards delivering 1,300 new homes across the state’s regions in the wake of sensationally pulling the plug on the 2026 Commonwealth Games.
Premier Daniel Andrews said the cost of the Games – which were to be held in Geelong, Ballarat, Bendigo, Gippsland and Shepparton – had blown out to $6 billion, and potentially as much as $7 billion, well above the $2.6 billion the state government had budgeted for.
He said the revised figure was “well and truly too much well and truly too much for a 12-day sporting event”.
“I will not take money out of hospitals and schools in order to fund an event that is three times the cost [which] is estimated and budgeted for last year.
“We will instead deliver all and more of the legacy benefits in housing, sporting infrastructure, tourism, and we will unpack all that tomorrow and throughout the week – and there will be further details of all of that, as well as the process to deliver that.”
In a statement, the government said, “We know there’s no more important issue anywhere in the state right now than housing. Ahead of the Housing Statement to be released later this year – and in addition to our Big Housing Build – we will provide a new $1 billion Regional Housing Fund to deliver more than 1,300 new homes across regional Victoria.”
“The new homes will include a mix of social and affordable housing – and we’ll work with councils, regional partnerships and local communities to determine the right mix of stock and locations for each region.”
The number of social housing applications had grown to 67,985 as of March this year, according to Home Victoria. The state government’s $5.3 billion Big Housing Build was last year considered on-track to deliver at least 16,000 social and affordable homes by 2026.
At the same time, latest data from Council to Homeless Persons shows Victoria has the lowest social housing stock in Australia.
REIV data showed regional Victoria’s residential vacancy rate was just 2.3% in May, while the weekly median rent had lifted over the month to $450.
“With the Games no longer going ahead, it was absolutely critical a commitment to build regional social housing remained on the table,” said Council to Homeless Persons CEO, Deborah Di Natale.
“Regional rents have gone through the roof while vacancy rates have remained very low. That’s a perfect storm pushing more people into homelessness.
“This is a statewide crisis so it’s really important to see the new social housing commitment extend beyond the four regional hubs that would have hosted the Games.”
It follows the federal government promising an immediate $2 billion to the states and territories last month for new social homes, as it looked to get the Greens onside to pass its signature $10 billion Housing Australia Future Fund (HAFF) through the Senate before the winter break. The off-budget HAFF would deliver 30,000 social and affordable homes in its first five years.
Sports infrastructure projects to go ahead
“Every one of the permanent new and upgraded sporting infrastructure projects planned as part of the Games will still proceed – and all will be completed as planned,” the government said in its statement.
Among these are a new aquatic centre at Armstrong Creek, a six-court indoor stadium at Waurn Ponds, an upgrade to Eureka Stadium in Ballarat to seat 10,000 spectators, a new community sporting facility at Miners Rest, upgrades to Bendigo Stadium, BMX trails in Shepparton, Gippsland Sports and Entertainment Park, and Ted Summerton Reserve in Moe, among others.
Property Council Victorian executive director Cath Evans the cancelling of the 2026 Commonwealth Games is a “devastating blow” for regional Victoria and for the many businesses across the State who had committed to supporting their delivery.
