NSW Government Cancels SXSW Sydney After Landmark Investment

South by Southwest (SXSW) Sydney has been quietly cancelled by the NSW Government only three years after the pair entered a landmark investment deal.

In a statement emailed to past attendees on Wednesday, organisers announced the end of the festival, citing “changing global environment that is impacting major events, festivals and cultural programs worldwide”.

“It’s bittersweet to be saying goodbye while the momentum is so high,” it continued. “We’re still celebrating the success of this past year – one that saw total attendance of more than 345,000 (representing a 15% year-on-year increase), and cemented a three-year cumulative economic impact of $276 million.”

SXSW Sydney was the first international venture of the decades-long Texas-based festival, and purported itself as a bedrock of global innovation, culture and creativity. Its 2023 launch saw guests including Nicole Kidman, Chance the Rapper, and Baz Luhrmann, and was expected to invest millions of dollars in Sydney’s visitor economy.

Festival played important role “showcasing Sydney’s creative and innovation sectors”

On Thursday, Destination NSW confirmed it “agreed not to proceed” with the event following a review.

The government signed a $12 million deal with the festival in 2022 agreeing to host five events between 2023 and 2027, allegedly invoking their break-fee clause to leave the contract early.

“SXSW Sydney has played an important role in showcasing Sydney’s creative and innovation sectors; however the decision has been made to not proceed with the event in 2026 and 2027,” the statement read.

“The event has delivered cultural, economic and industry outcomes for the city over the past three years. Following a review, it was agreed not to proceed with the event in 2026 and 2027.”

SXSW also received funding from the City of Sydney, worth $300,000 in cash across the three events, plus $369,533 in value-in-kind, a third of which covered the venue fee waiver for the 2025 event. A further $100,000 had been budgeted per year for SXSW between 2026 and 2027, plus $424,000 in non-monetary support.

“SXSW Sydney would not have been possible without our partners, Destination NSW and SXSW, as well as our speakers, sponsors, volunteers and attendees,” said co-managing directors Simon Cahill and Jono Whyman in a joint statement.

“SXSW Sydney was an unforgettable three-year journey, and we owe a debt of gratitude to the people who joined us for it. We are especially grateful to the SXSW Sydney team for their dedication and hard work in bringing this event to life and establishing a platform that showcased Australia and the Asia-Pacific as pioneers in global culture.”

Organisers stated they would be working closely with their team members to provide appropriate support.