The 2011 Australian Grand Prix reportedly lost (Aus) $50.23 mllion (£33.2m) for the first time since it came to city of Melbourne in 1996.
The news has cast doubt over the long-term future of the event which has lost a total A$300m since the inaugural event, with the bill being picked up by the states taxpayers.
Tourism minister Louise Asher says the only way the event can remain at Albert Park past the 2015 contract expiration is if the race hosting fee, charged by Bernie Ecclestone, is significantly reduced.
“If you look at the event overall, I think there have been benefits to Melbourne notwithstanding the fact that this is a very, very large taxpayer subsidy about which I’m not comfortable,” she is quoted as saying by The Age.
“In late 2013 [or] 2014 obviously the cabinet will consider the event. The pricing of the contract will be a significant feature of any negotiations.
“I take my hat off to [Mr Ecclestone], he’s negotiated a very good deal, legitimately, with the previous government.”
According to a report into the economic benefits to the region, the race was seen by a total of 270 million worldwide, but the monetary impact on the economy only totalled A$39m, meaning the event still lost A$11m when taking the economic benefits into consideration.
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