2026 Commonwealth Games: Victorian Government pays $409 million settlement after hosting withdrawal

Victorian Premier Daniel Andrews. Photo / Getty Images

The State of Victoria has agreed to pay the Commonwealth Games parties (CGF CGFP and CGA) A$380 million (NZ$409m) after the July announcement of its decision to withdraw from hosting the 2026 Games.

Following the decision, affected parties engaged in confidential negotiations and the dispute was referred to mediators.

Former New Zealand Judge the Honourable Kit Toogood KC and the former Chief Justice of the WA Supreme Court, the Honourable Wayne Martin AC KC, were appointed joint mediators and a settlement to the dispute was agreed upon.

The parties also agreed the multi-hub regional model was more expensive to host than the traditional models.

The state was only revealed as the host last year, shared among Geelong, Bendigo, Ballarat and Gippsland.

Durban withdrew from hosting the 2022 event in 2017, replaced by Birmingham.

The settlement finalises all matters between the parties and the terms of the settlement will otherwise remain confidential.

The parties are legally bound not to speak further regarding the details of the settlement.

It was to be the sixth time Australia hosted the Commonwealth Games, the last time was on the Gold Coast in 2018.

Brisbane is set to host the Olympics in 2032.

In April, the New Zealand Olympic Committee (NZOC) announced it had signalled early interest in hosting the 2034 Commonwealth Games.

The NZOC’s interest followed the implementation of a new hosting model by the Commonwealth Games Federation (CGF), which allows for a more locally tailored sports programme and the ability for competition to take place across multiple cities and regions.

New Zealand previously hosted the Games in 1950, 1974 and 1990.

NZOC CEO Nicki Nicol said she was “incredibly disappointed” by Victoria’s decision to withdraw from hosting.

“This unexpected announcement is unsettling for New Zealand team athletes who were working towards a Games close to home in just under three years’ time. We are looking to the Commonwealth Games Federation as it begins a process to appoint a new host for 2026.”

The Government said in April it was welcoming interest by the NZOC in hosting the 2034 Games, and that the process had cross-party support from the National Party.

“Further work needs to be done to understand New Zealand’s position before considering whether to make a formal bid for the 2034 Games, but I am excited at the prospect and potential for us to host it here,” Sports Minister Grant Robertson said in April.

“Last year’s Commonwealth Games really highlighted for me how important the event is for our sportspeople to get a chance to compete at a multi-discipline international event outside of the Olympics. Kiwis really got behind our athletes and it was a fantastic event, both in Birmingham but also for people back here watching and supporting our team.”

NZOC reiterated their comments following the announcement of Victoria’s withdrawal from hosting in 2026 and said they remain committed to a planning 2034 bid.