A heated dispute has emerged over a $200,000 funding shortfall that has forced Australia's iconic Sculpture by the Sea exhibition to scramble for corporate and public donations. The financial crisis coincides with a landmark tax reform summit convened by state and federal arts ministers to address the struggling arts sector's mounting economic pressures.
Federal Arts Minister Tony Burke acknowledged that the arts sector is facing severe economic hardship but firmly ruled out federal funding for the popular Bondi to Tamarama outdoor exhibition. Burke cited concerns that the organization does not compensate its participating artists, stating that he had been advised artists are required to pay fees rather than receive payment for their work.
"Sculpture by the Sea is a wonderful event. People enjoy going to it, it attracts huge crowds, but one of the principles we established in our cultural policy was that, for too long, artists have been expected to work for free as though their life's work was a hobby and not a career," Burke explained. He added that his information indicated artists must pay to have their works included in the exhibition, calling for the organization to directly address these concerns.
Founder David Handley strongly disputed Burke's claims, clarifying that while artists pay a $50 application fee, each participating artist receives a guaranteed minimum income of $3,000. "Each artist who applies to be in the exhibition pays a $50 application fee – there are no other charges or costs applied to all artists and again and regrettably the minister has been seriously misinformed," Handley stated. He emphasized that artists exhibiting in both Sydney and Perth collectively earn between $2 million to $3 million from the exhibitions through artist subsidies, awards, and sculpture sales.
Handley explained that the only additional costs some artists might face involve expensive installation requirements, particularly when machinery like cranes is needed beyond what the organization can provide for free through donor and sponsor support. "How are we meant to pay the artists if Creative Australia doesn't fund us?" he questioned, highlighting the organization's funding challenges.
Australia's largest outdoor sculpture walk has successfully raised $120,000 toward addressing its $200,000 budget shortfall, after warning it was heading toward a financial cliff. The organization was forced to cancel its Cottesloe event in Perth earlier this year due to financial constraints. Creative Australia, the federal funding agency, last provided funding for Sculpture by the Sea Bondi in 2023.
The funding controversy unfolded as arts ministers from New South Wales, Victoria, South Australia, and Western Australia gathered at the Sydney Opera House for a historic tax reform summit. While ministers arrived without concrete funding commitments, Burke indicated that tax breaks would be considered when the national cultural policy, Revive, undergoes review next year.
"There are many parts of the arts sector that are very much struggling... [but] you don't get bigger reform without doing the rigorous work first," Burke said. "We're right at the beginning of a whole lot of ideas and I want the work to be done. If you do make changes to the tax system, they've got to be big enough to make a difference, and they're long-lasting and would give real security to the sector."
The summit's 307 submissions revealed widespread support for making government art prizes tax-free, according to NSW Arts Minister John Graham. "That way the winner of the Archibald Prize would pay as much tax as the winner of a bet on the Archibald Prize, who pays zero tax," Graham explained. There was also near-universal support for extending existing tax incentives from screen and digital gaming to include theater and performance productions.
Elaine Chia, chief executive of the Naomi Milgrom Foundation, advocated for tax reforms that address the demand side of the arts business. She pointed to Canadian examples where doctors can prescribe free museum tickets for mental health purposes and 18-year-olds receive vouchers redeemable for arts experiences. "Who wants to play to half the house?" she asked, contrasting arts offerings with government health initiatives.
Archibald Prize winner Ben Quilty highlighted the educational crisis facing the arts, listing six arts schools that have been either shut down or restructured over the past 12 years. He noted that music schools have been equally devastated and framed the issue as a matter of government priorities. "If we get one-tenth of the subsidies Woodside is given we'd be f---ing right," he said. "When you say we are on a precipice, I'd say we are on a terrifying precipice."
Sydney Theater Company's executive director Anne Dunn described the arts sector as being at a critical tipping point while making the case for production offset taxes for theater and broader reforms. "We are seeing creatives leave Sydney. We are seeing creatives and arts workers leave the industry completely. We are seeing casts get smaller because the companies can't produce the works of scale we once were able to," Dunn explained. "We have seen a real loss to the sector across all those areas. It's on the stage, it's behind the stage, it's in our workshops. It's been a really, really tough time, and it's a time that I've never seen in my 30 years in this business."
A joint communique issued by the ministers did not commit to specific reforms but acknowledged that government funding alone cannot keep pace with rising costs and the sector's challenges. "One of the other big levers that could be pulled is tax reform. Annual funding comes and goes with budget cycles but structural changes to our tax system could boost culture for generations to come," the ministers stated. They concluded that while tax reform is complex, the current moment presents a unique opportunity where crisis meets potential for transformative change.
