A $15.4 Million Lifeline Rescues Regional NSW Galleries from Collapse

28 August 2025

The NSW government has announced $15.4m in arts funding. The Broken Hill Regional Art Gallery applied for $100,000 but was overlooked. Photograph: Dee Kramer/Destination NSW

A wave of relief has swept through regional New South Wales as the state government announced a critical injection of $15.4 million over two years to support arts and cultural organisations, quelling widespread fears that a funding crisis could shutter their doors. This key investment, administered through Create NSW’s Arts and Cultural Funding Program, allocates $7.5 million to 31 regional arts organisations, including 10 galleries whose futures had seemed uncertain just weeks before.

The announcement was a dramatic turnaround following a funding debacle a month earlier, when more than half of applicants were rejected in a contested four‑year grants round. Many of the institutions that had previously relied on steady state support were left scrambling to apply for a shorter two‑year funding window. Among those most alarmed were regional public galleries, where approval rates fell below 18 per cent.

At the heart of the response was Regional Arts NSW, whose chief executive, Dr Tracey Callinan, welcomed the new funding as a recognition of the unique value and challenges of regional arts. She emphasised that although not every applicant received support, the outcome represented an important shift in acknowledging regional equity. The organisation now plans to assist those left out, mindful that local councils may need to step in to keep their galleries running.

One of the most prominent casualties of the earlier round was the Broken Hill City Art Gallery, the oldest regional gallery in NSW. Despite applying for its customary $100,000 per year from Create NSW, it failed to secure funding in either the four‑year or two‑year rounds. The gallery’s manager, Kathryn Graham, expressed how devastating the rejection was for local artists, schools, tourism and First Nations cultural programming and noted the institution was now forced to reassess its operations.

Gallery directors and communities across the state found cause for optimism once again. Wagga Wagga Art Gallery received $110,000 per year, while Tamworth and Maitland both secured $85,000 annually. Although Maitland had applied for a higher amount, its director Gerry Bobsien said that even this sum allowed the gallery to proceed with its planned programs after a stressful period.

Meanwhile, urban arts bodies faced their own setbacks. In Sydney, 23 arts organisations shared nearly $3 million in funding. The Australian Design Centre was awarded $150,000 annually, half the $300,000 it had previously received. Its executive director Lisa Cahill conveyed gratitude for the support but underscored the sharp erosion in resources compared to the past, pointing to continued uncertainty.

The broader arts sector also welcomed the funding relief. Brett Adlington, chief executive of Museums & Galleries of NSW, spoke of collective nervousness about the funding shifts but noted the outcome was generally received with gratitude.

Adding another dimension to the package was $3.29 million earmarked for 1,296 individual artist and project grants. Among the recipients is Khaled Sabsabi, reinstated as Australia’s representative at the Venice Biennale, whose large‑scale work will explore displacement and migration through a lens of multicultural and multifaith communities.

Arts Minister John Graham framed the revamped program as a response to sector feedback. Moving from annual to biennial funding was intended to ease administrative burdens and better support long‑term planning. He described regional areas as the “big winners” under the revised landscape.

From the brink of a cultural collapse, NSW’s regional galleries and artists have found themselves reborn with newfound confidence. The infusion of funding may not solve every challenge but it offers vital breathing space for community institutions integral to their towns’ character and tourism appeal. It also signals a deeper recognition that arts ecosystems outside major cities require sustained, reliable backing to thrive.

For galleries that missed out, uncertainty remains. But for many others, the promise of sustained operations, continued programs and artistic growth is now restored albeit with cautious optimism that momentum will hold.