Public money runs through three layers. Creative Australia, the federal funding and advisory body, commissions the Venice pavilion and distributes grants. The states own the big galleries: the Art Gallery of New South Wales, the National Gallery of Victoria, the Queensland Art Gallery and Gallery of Modern Art. Canberra funds the national collecting institutions. The 2026–27 federal budget carried a A$1.1 billion arts and culture package, lifted Creative Australia’s base appropriation from A$311.8 million to A$326.5 million and set aside A$35 million for First Nations artists, by Limelight’s reading. The same account notes that some institutions face staff reductions regardless.
A new National Cultural Policy is being written. The government opened public consultation on March 23, 2026, and on April 2 announced expert panels and a policy advisory group, according to the arts minister’s media releases.
The Sabsabi affair
The defining dispute began in February 2025. Shortly after announcing Khaled Sabsabi and the curator Michael Dagostino for Venice, Creative Australia’s board withdrew the commission. A newspaper article and questions in a Senate hearing had raised a 2007 video of his that features Hassan Nasrallah, then the leader of Hezbollah, and the senators who raised it alleged antisemitism, Artnet News reported. Those who objected to the withdrawal included thousands of signatories to an open letter, 14 former pavilion curators, and Archie Moore and Ellie Buttrose, who won Australia the Golden Lion in 2024 and called the decision a corruption of the agency’s principles. The philanthropist Simon Mordant resigned as ambassador. The head of visual arts, Mikala Tai, left, as did the board member Lindy Lee, ArtAsiaPacific recorded.
Both sides put their case on the record. At Senate estimates on February 25, 2025, Adrian Collette, the agency’s chief executive at the time, said Sabsabi had been appointed in good faith, cited the risk that the works would feed divisive narratives, and acknowledged that the artist had not been given the chance to address the board. The Greens senator Sarah Hanson-Young told the same hearing that the decision had shamed Australia internationally, The Art Newspaper reported. Sabsabi told the paper in April 2025 that the works had been misrepresented, and that their subject is the violence of war and the workings of propaganda.
The chair stepped down in May 2025. An external governance review followed, and on July 2 the pair were reinstated, with an apology from the acting chair, Wesley Enoch, and the chief executive, Adrian Collette. The review identified unresolved tensions between freedom of expression and the agency’s wider accountabilities, which is a fair description of the whole episode. Sabsabi now shows conference of one’s self in the pavilion and khalil in the main exhibition, the first Australian to do both at once, by Creative Australia’s account.
The aftermath is administrative, which is how such things end. The call for Venice 2028 is a two-stage process with up to five shortlisted teams paid A$5,500 each, and it promises defined roles, responsibilities and accountabilities. Tai will curate the 2027 TarraWarra Biennial.
Sydney’s opening night
The 25th Biennale of Sydney, directed by Hoor Al Qasimi under the title Rememory, opened in March into a second row. Remarks from the stage by the performer DJ Haram at the opening concert were condemned as antisemitic by the NSW Jewish Board of Deputies and criticized by the premier, Chris Minns. PwC withdrew its sponsorship. The Biennale said it had been blindsided and pointed to its code of conduct, the Biennial Foundation reported. Police later dropped their investigation for want of evidence, according to The Art Newspaper. Reviews were cool on other grounds. ArtsHub found the show dispersed and its budget visibly tight.
The argument has since moved into a hearing room. A Royal Commission on Antisemitism and Social Cohesion followed the terrorist attack on a Hanukkah celebration at Bondi Beach on December 14, 2025, in which 15 people were killed, as The Art Newspaper recorded. In July 2026 it heard Jewish artists and community representatives describe exclusion and fear in the creative sector, and Tim Blackwell gave evidence as Creative Australia’s acting chief executive, ABC News reported. The opposite complaint is censorship, the word ArtReview’s critic used for the 2025 Venice withdrawal.
The state galleries
The Art Gallery of New South Wales opened a A$344 million extension in 2022 and announced 51 redundancies three years later after a A$5.8 million funding cut. The Public Service Association’s Tony Wright warned that “exhibition quality is in the firing line”. The NSW Treasury replied that the gallery’s revenue had not kept pace with its costs and that it employs more staff than its interstate peers, ArtAsiaPacific reported. The same government opens the A$915 million Powerhouse Parramatta on November 7. New buildings are easier to fund than the people inside them. That is true everywhere, and Sydney has made it unusually legible.
The Museum of Contemporary Art Australia reintroduced a A$20 adult admission charge on January 31, 2025. Government funding of A$4.36 million a year covers 14% of its operating costs and has not changed since 2008, The Art Newspaper reported, and the director, Suzanne Cotter, presented the fee as necessary for the museum’s long-term survival.
Copyright and the machines
The next policy fight is over training data. In October 2025 the Labor government said it would not let artificial intelligence companies train freely on Australian creative works, and the attorney-general, Michelle Rowland, said there were no plans to weaken copyright protections. Scott Farquhar of the Tech Council argues that the current law deters investment, ABC News reported in March 2026. On September 16, 2026, the ABC reported that the government was considering copyright changes and was being urged not to weaken protections as it seeks AI investment.