Victorian Government announces regional worker accommodation fund

The $130 million fund is part of the $2 billion regional Victoria package revealed by Premier Daniel Andrews as he announced on July 18 the state's withdrawal from hosting the Games.

It will go towards providing housing options in regional communities where key workers are struggling to find affordable place to live.

Minister for Regional Development Harriet Shing said this was one of the biggest challenges in attracting and keeping workers in the regions.

"Building workers' accommodation is just one way we want to help," she said.

The regional Victoria package also includes a $1 billion regional housing fund to build more than 1300 new homes, $60 million for regional tourism infrastructure and $60 million regional community sport development fund.

There is also a $150 million regional tourism and events fund, $70 million investment in Visit Victoria and $20 million Aboriginal economic development fund.

For councils who had already invested in delivering the 2026 event, $25 million has been set aside to allow planned revitalisation and other projects to go ahead.

Mr Andrews announced on July 18 the cost of the Games had blown out from $2.6 billion to $6 billion.

"We have informed Commonwealth Games authorities of our decision to seek to terminate the contract and to not host the Games," he said.

The Commonwealth Games Federation said in a statement the higher costs were due to the government choosing to hold the games in locations across regional Victoria.

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"The numbers quoted to us today of $6 billion are 50 per cent more than those advised to the Organising Committee board at its meeting in June," it said.

Mr Andrews wouldn't be drawn into responding to the comments, saying it would jeopardise contract negotiations.

"I'm simply won't be having a debate and argument with those people while we're essentially having negotiations with their bosses in London," he said.

The decision was described as a "humiliation" for the state by Opposition Leader John Pesutto and regional mayors in Geelong and Ballarat said it was a disappointing outcome.

Regional Cities Victoria chair Andrea Metcalf echoed the disappointment.

"The 2026 Commonwealth Games promised flow on benefits for every corner of the state. Outside of the hub cities, this now appears lost," she said.

"We look forward to seeing details of the proposed state-wide tourism package but recognise this will not deliver the same benefits as broadcasting the best of regional Victoria into billions of lounge rooms around the world."

The two-week sporting festival in March 2026 was touted as regional Victoria's games with Geelong, Bendigo, Ballarat, Shepparton and Gippsland to host athletes and events.

The government estimated the Games would contribute more than $3 billion to the state's economy and create more than 7500 jobs.