Create NSW Faces Budget Cut, Sparking Concerns Over Sector Support
Image: Sydney Opera House / Facebook
Following the release of the 2025–26 NSW Budget, the state’s key arts agency, Create NSW, will undergo major restructuring with a 25 per cent cut in staffing. The move has prompted concerns across the arts sector about the state’s future capacity to support and fund creative industries.
The job losses are expected to mainly affect the infrastructure division, which previously oversaw major projects including the Sydney Modern Gallery, the Opera House Concert Hall, and the Walsh Bay Arts Precinct.
NSW Arts Minister John Graham said in a statement to the Sydney Morning Herald that the millions saved in administrative costs would be reinvested in frontline projects and audience engagement. He framed the move as a response to ongoing post-pandemic pressures on the arts.
“We’re refocusing Create NSW. It will be focused on supporting the people in the arts, culture and creative industries – the people creating great work and working with the sector to develop new audiences,” he said.
However, the cuts have drawn criticism from multiple parties and arts organisations. Jenny Leong MP, NSW Greens spokesperson for the Arts and Creative Industries, warned on that the decision could harm the sector’s long-term sustainability.
“This is a terrible blow to our cultural life and to our ability to tell Australian stories, with savage cuts to key arts organisations and to our emerging artists which will impact on us all for decades to come,” Leong said.
She also noted that smaller, community-based groups are particularly at risk, as they often serve as vital platforms for new artists’ early-stage work.
“By gutting the companies that support emerging artists, the Government is destroying the future of the industry.”
Strong cultural investment, but gaps remain
Despite the reduced funding for Create NSW, overall investment in arts, culture and sport remains strong. The state budget boosts total sector spending to $1.37 billion.
The government has stressed that the reforms reflect a shift in focus—from building infrastructure to activating it with content and audiences.
Significant investments include a $100 million capital fund to develop a second film studio in Sydney and $280.6 million to support local and international screen productions, alongside continued post-production rebate schemes.
Sound NSW will receive $20 million to implement the Contemporary Music Strategy, aimed at building Indigenous and local artist capabilities, supporting venue sustainability and promoting fair pay for musicians.
Still, the lack of dedicated new funding for the visual arts sector has raised fresh concerns among industry stakeholders.
The changes come amid broader uncertainty for the arts nationally, as federal funding cuts have led to theatre closures and the downsizing of community arts programmes, posing further risks to the sector’s resilience.
