Government steps in to save music festivals with second stage of multimillion-dollar lifeline

7NEWS

25-04-2025

With some of Australia's most-loved festivals collapsing amid rising artist fees and production costs — and a cost-of-living crisis curbing fans' spending — it's little wonder government has stepped in to help save the live music industry.
Applications will open from Thursday for the second round of the NSW government's Contemporary Music Festival Viability Fund, a critical intervention after the cancellation of events including Splendour In The Grass, Falls Festival, Spilt Milk and Groovin The Moo.
Established in September 2024, the $2.25 million fund has already contributed to the return of Bluesfest in Byron Bay, Lost Paradise on the Central Coast, Yours And Owls in Wollongong, and Listen Out and Field Day in Sydney.
Listen Out and Field Day organiser Fuzzy Operations managing director Adelle Robinson said the funding had been a 'lifeline' for both festivals.
'We were seriously considering not moving forward with Field Day, as the market was so precarious at the end of last year,' Robinson said.
'A reset with our programming and the Contemporary Music Festival Viability Fund were the two reasons the show went ahead.'
The fund allocates up to $500,000 per festival to offset pressures including sluggish ticket sales, inflation, insurance, freight and currency exchange.
There are caveats and contingencies to protect taxpayers too.
Funds are released in two stages. Half the grant is paid within 30 days of executing the funding agreement and meeting preconditions. The second half is only paid if the festival needs it to break even after ticket sales and other income are counted.
This milestone approach ensures taxpayer money goes only to festivals facing real financial shortfalls — reducing the risk of overpayment.
Bluesfest Byron Bay, which drew 109,000 punters over the Easter long weekend, has announced it will return in 2026 thanks to strong attendance — despite the 2025 run being billed as its final hurrah.
Festival director Peter Noble told music industry outlet The Music Network the solid return followed a disappointing 2024 when just 65,000 attended.
After investing time and tens of thousands of dollars into a Destination NSW-led review that yielded no support, Noble said he felt burnt out and ready to walk away.
'We were just deflated over that,' he said.
'It was like, 'Was that a fishing exercise to get a whole lot of numbers about how festivals are doing?' I said the next one would be the last festival. I didn't want to do it anymore.'
Bluesfest was among five recipients in the first round of funding, receiving $500,000 to help secure a lineup that included Crowded House, Chaka Khan, Toto and Hilltop Hoods.
The 109,000 punters marked the highest attendance of any Australian festival since pre-COVID and the third-biggest Bluesfest in the history of the festival.
NSW Music and the Night-time Economy Minister John Graham said the post-COVID era had been a financial nightmare for the state's music festivals.
'People of all ages love the outdoor music festival experience and the artists they discover,' Graham said.
'We can't afford to lose that cultural experience because the festivals can't afford to pay their rising bills.
'The festival circuit is a vital part of the live music industry, which employs almost 15,000 people. It's too important to lose.
'That's why we're backing festivals with emergency funding and reforms that bring down their costs.'
Applications for the next round open on May 1 for existing large-scale contemporary music festivals in NSW with a capacity of 15,000 or more.
Applicants must demonstrate a track record of delivering significant outcomes for contemporary music, outline how their festival supports the NSW music ecosystem and contributes to diversity in the sector, and prove the funding is necessary to address financial challenges threatening their viability.
The next funding round will be even more than the budgeted $2.25 million for this year's initial round, 7NEWSs.com.au understands.
Government department Sound NSW head Emily Collins said the funding was critical.
'It's supporting iconic festivals, easing the burden of a rapidly changing landscape and helping businesses adapt,' Collins said.