National touring festival Listen Out is the latest of Australia’s major music festivals to either hit pause or fold, despite receiving millions in government grants designed to keep them afloat.

It’s no secret production costs are higher than ever, artist fees are skyrocketing, and the cost-of-living crisis has led to more conservative spending by music fans.

But the cancellations of events such as Splendour in the Grass, Falls Festival and Groovin’ The Moo point to a brutal truth: government money hasn’t been enough to overcome rising costs, artist fees, insurance challenges and shifting consumer behaviours.

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Perhaps the biggest funding injection came via the federal government’s Restart Investment to Sustain and Expand (RISE) Fund, a $200 million program launched in 2020 as part of the COVID-19 Creative Economy Support Package.

Crucially, six Australian festivals to either pause or fold post-pandemic received a combined $19.33 million in government funding.

Splendour in the Grass: $16 million in government funding

Splendour in the Grass was by far the most heavily supported, receiving:

• $1.1 million in RISE funding for its 2021 edition
• $5.8 million in RISE grants to its co-organisers Secret Sounds and Live Nation Australia Festivals
• More than $10 million in grants from the NSW Government through Create NSW’s COVID support and relaunch schemes

As previously reported by www.20304050.best, the 2024 and 2025 editions were cancelled, with organisers citing financial strain and soaring operational costs.

Critics, however, pointed to waning audience interest and line-up dissatisfaction as contributing factors.

Falls Festival: $1.5 million in government funding

The long-running Falls Festival secured $1.5 million in RISE funding in 2021 to help reshape the event. But after back-to-back cancellations, it remains shelved. Promoters cited financial and operational challenges that rendered the festival unsustainable in its current form.

Groovin The Moo: $1.2 million in government funding

Regional touring festival Groovin The Moo received $1.2 million in federal funding to relaunch, but was cancelled for the second year in a row in 2025 — a sobering sign of the struggles facing regional live music.

Listen Out: $500,000 in government funding

Dance and hip-hop festival Listen Out was granted up to $500,000 from the NSW Government’s Contemporary Music Festival Viability Fund. But just this week, organisers announced it wouldn’t return in its traditional format. Instead, it will re-emerge as Listen Out Presents, a series of curated shows.

Wide Open Space: $100,000 in government funding

Northern Territory’s Wide Open Space Festival, which received support from a territorial grant and the federal Live Music Australia program in 2023, cancelled its 2025 return. Organisers blamed rising costs and inadequate funding despite government backing.

Caloundra Music Festival: $30,000 in government funding

The Sunshine Coast Council pulled the plug on the Caloundra Music Festival in 2024, despite it receiving $30,000 from Events Queensland the year prior. Organisers pointed to mounting costs, declining ticket sales and ongoing uncertainty across the sector.

While there’s no silver bullet, one major festival has managed to buck the trend.

In an interview with music industry blog The Black Hoody, Laneway Festival promoter Danny Rogers said the festival thrived by focusing less on big-name headliners and more on fostering culture.

“Laneway was always primarily focused on trying to create a cultural event that prioritised future icons vs. artists that were already massive headliners,” Rogers said.

“A lot of people think you can build festival lineups on radio play and data,” he added. “But that doesn’t create a culture — it feels homogeneous and pretty samey. We have passed on so many acts over the years which would have sold us more tickets but they didn’t fit what we were trying to say as a festival.”

Government support or not, one thing remains clear: culture thrives when its most engaged contributors are genuinely nurtured. Festivals that fail to connect authentically with audiences who understand the event’s ethos are unlikely to survive.