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It’s no surprise the Victorian 2026 Games had a cost blowout. Look at the state’s record

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Another day, another financial shock for Victoria. The sporting capital is losing its mojo, and for evidence, you just have to look at the state’s major projects, as Ticker’s Ahron Young explains

$28 billion. That’s the latest figure that Victorians are paying more for major projects to be completed.

From the Metro Tunnel to the West Gate Tunnel, the major cost blowouts are hard to ignore.

Victorian Premier Daniel Andrews with his Deputy, Jacinta Allan.

Commonwealth Games

So it was no surprise, and should have been no surprise, that the cost of the Commonwealth Games too would blow out. Especially since it was doing something new – spreading events across the state, in places where world-class facilities do not already exist.

It almost feels like it was designed to fail.

A columnist wrote that Victoria has the worst-performing economy in the country, exacerbated by world-record lockdowns during COVID. He said, “Victoria’s is a pretty weird Australian state government. It combines the ideology of Bernie Sanders and the social policies of San Francisco with the fiscal prudence of Puerto Rico.”

But it’s much more than that. Fiscally, Victoria has been facing a crisis for some time.

There’s no doubt that a city where the population has substantially increased should also need more infrastructure.

The previous Liberal government had no agenda in office. As one senior party official told me after their defeat in 2014 – “It’s not in our DNA” to build infrastructure.

Debt-built state

This means the party paints itself as fiscally responsible is prepared to leave the hard work to the Victorian Labor Party, notorious for its “jobs for mates” reputation.

When Labor lost the election by one seat to the Coalition in 2010, it was because no one had done anything to help with congestion. Melbourne is now a city where you need to live as close to work as possible. Crossing the city is impossible.

So for the Coalition to spend four years doing nothing, and only proposed to build the East West Link at the 11th hour as an election ploy, essentially relieves them of any credibility on this issue. It’s no surprise they lasted one term. Victorians wanted things done.

So when Labor returned to power, they campaigned on traditional Labor issues like more spending on health and education, but they also had a plan (and costings), to remove 50 level crossings and begin work on long-awaited projects.

The axing of the Commonwealth Games tells us in a roundabout way that Victoria can no longer afford to pay for health and education, as well as do anything else. But will this be a rerun of the wreckless Cain/Kirner years in the difficult 1980s and 90s?

Where the joke went something like this: “What’s the capital of Victoria? 20 cents.”

Since then, so much has been done to fix the bottom line, to fix Victoria’s reputation. But Victorians are a funny bunch. Referred to by former (Sydney) Prime Minister John Howard as “like the Massachusetts of Australia.”

Victoria is home to about 30 percent of the nation’s population.

Hard deadlines

One thing Victorians don’t seem to expect, or get, is hard deadlines on major projects. It’s one of the great benefits of hosting the Games – things have to be done on time. Maybe that was the bigger fear.

But all these years after the 2014 election, none of the “city-changing” projects are finished. The airport link looks dead. The city resembles a never-ending sand pit, with roadblocks at every corner, and rarely any sign of any workers. Just fences and reduced speed signs.

And then comes the bill. It was all fine to borrow money when money was cheap, but a pandemic and 12 interest rate rises make balancing the budget and paying for infrastructure through debt rather tricky.

If only they had done it sooner.

Politicians in Victoria waited too long to build much-needed projects because of their aversion to debt. The trouble is, that was at a time when debt was cheap.

By the time they jumped in, the cycle had changed, and the cost of debt had risen dramatically.

So now it’s going to cost Victoria big time.

Here’s a how at the overspending on major projects.

North East Link

Promised: $5 billion 

22/23 Budget: $15.4 billion (budget details potential future increases)

West Gate Tunnel

Promised: $500 million

Revised project cost: $5.5 billion

22/23 Budget: $10.2 billion

Metro Tunnel

Promised: $9 billion

22/23 Budget: $12.36 billion

CURRENT BUDGET BLOWOUT: $3.36 billion

Note: Legal disputes pending

Level Crossing Removals (initial commitment)

Promised: $5 billion

Victorian Auditor-General: $8.3 billion

CURRENT BUDGET BLOWOUT: $3.3 billion

 East West Link

Promised: $0 to cancel

Cost: $1.3 billion to cancel it

LAST REPORTED BLOWOUT: $1.3 billion

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Tariffs create economic uncertainty for corporate giants

CEOs warn tariffs are harming planning, raising costs, and reducing consumer spending, leading to uncertain economic forecasts.

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CEOs warn tariffs are harming planning, raising costs, and reducing consumer spending, leading to uncertain economic forecasts.

In Short

U.S. company CEOs, including those from American Airlines and Procter & Gamble, are worried about the negative effects of changing tariff policies on their businesses and consumer behaviour.

Many industries anticipate increased costs, potential price hikes for consumers, and a slowdown in economic growth due to uncertainty in tariff regulations.

CEOs from major U.S. companies, including American Airlines and Procter & Gamble, are expressing concerns about the impact of shifting tariff policies on their businesses and consumer behaviour.

Travel has already been affected, with airlines revising their full-year outlooks due to softer leisure travel as uncertainty looms. Procter & Gamble is contemplating price increases on some products in response to these tariffs.

Major automotive groups have urged President Trump to reconsider the 25% tariff on car parts, citing significant increases in costs for consumers. American Airlines’ CEO, Robert Isom, noted that hiring and expansion plans may be curtailed due to the unpredictable economic environment.

Harming investment

CEOs from various sectors, including finance and aviation, highlighted how the instability in tariff regulations is harming investment and economic growth. Some consumers are already reacting by purchasing big-ticket items prematurely, fearful of future price hikes.

Telecom executives from Verizon and AT&T indicated they cannot entirely absorb the costs associated with tariffs, leading to inevitable price increases for consumers. Similarly, home builders like PulteGroup anticipate rising costs for new homes due to tariff-related expenses on materials.

While some executives support certain tariffs, many are concerned about the long-term effects on their operations and the economy as a whole. The International Monetary Fund also projects a slowdown in global growth as a result of these tariff policies.

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Trump urges Putin to halt Kyiv attacks after casualties

Trump urges Putin to cease attacks on Ukraine following deadly missile strike on Kyiv, killing 12 and injuring 90.

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Trump urges Putin to cease attacks on Ukraine following deadly missile strike on Kyiv, killing 12 and injuring 90.

In Short

A missile and drone attack on Kyiv killed 12 and injured 90, prompting Trump to urge Putin for a peace deal amid escalating tensions.

Ukraine seeks an unconditional cease-fire, but ongoing strikes and unacceptable Russian conditions raise concerns over future peace negotiations.

In a recent missile and drone attack on Kyiv, 12 individuals were killed and 90 injured, marking the most severe air assault this year.

U.S. President Trump responded by urging Russian President Putin to halt attacks and pursue a peace agreement. He expressed concern over the loss of life, highlighting that 5,000 soldiers perish weekly.

The attack involved over 200 missiles and drones and targeted critical Ukrainian industries. Trump’s frustration has increased as peace talks stagnate, with him also critiquing Ukrainian President Zelensky for dismissing a peace proposal that would legally recognise Russian control over Crimea.

Peace deadline

Despite Trump’s previous reluctance to criticise Putin, the attack shifted his stance. He has signaled a deadline for both Russia and Ukraine to reach a peace deal while the U.S. contemplates the extent of its involvement in negotiations.

Ukraine seeks an unconditional cease-fire, but Russia’s conditions remain unacceptable to Kyiv. A recent U.S. proposal would allow Russia to retain substantial territory and would limit Ukraine’s NATO aspirations.

Zelensky accused Russian forces of terrorism, attacking civilian areas and inciting widespread destruction, while Trump acknowledged the challenges of restoring Crimea to Ukraine.

The situation continues to escalate, with ongoing strikes on civilian infrastructure, drawing international attention and condemnation. As rescue workers clear debris from the latest attack, uncertainties remain about the future of peace talks and the safety of Ukrainian citizens.

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Trump targets migrant gangs with deportation crackdown

Trump advocates for strong immigration enforcement to restore law and order, warns against court-blocked deportations, and labels gangs as terrorist organizations.

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Trump advocates for strong immigration enforcement to restore law and order, warns against court-blocked deportations, and labels gangs as terrorist organizations.


Former President Donald Trump says his administration is committed to restoring law and order through aggressive immigration enforcement.

He warns that dangerous consequences could unfold if courts block mass deportations.

Trump has labelled several gangs, including Tren de Aragua, as foreign terrorist organisations, and is pushing for faster judicial cooperation.

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