AUSTRALIAN Grand Prix chairman Ron Walker has admitted rising costs and the ''wretched fee'' paid to formula one supremo Bernie Ecclestone could ''kill'' the race in Melbourne when the contract expires in 2015.

It cost the state government $50 million last year to cover the event's losses, including an annual race fee estimated to be in excess of $25 million.

Asked if that race fee, paid to Mr Ecclestone's company, would have to come down for the government to re-sign the event beyond 2015, Mr Walker replied: ''Sure. That will break the camel's back. We all know that … that could kill it.''

The grand prix boss also admitted that the Tax Office had asked for a report detailing fees paid to Mr Ecclestone as part of an investigation. ''That report is finished now,'' Mr Walker said.

The Saturday Age has obtained every annual report for the Australian Grand Prix Corporation. When Melbourne hosted its first grand prix back in 1996, the estimated race fee paid to Mr Ecclestone was $8 million, while revenue from the event topped $51 million.