Melbourne's arts community and Artist-Run Initiatives (ARIs) are facing growing financial pressure as inflation and insufficient funding take their toll.
The ongoing cuts to arts funding have been a recurring theme in the city’s cultural landscape, especially as economic uncertainty continues to shape both public and private investment in the arts.
Melbourne University researcher, Guy Morrow, reports on the National Gallery of Australia's (NGA) funding decrease in recent years.
This concern over government support for Australia’s national visual arts institution is just one example of the public sector scaling back its contributions to the arts.
With fewer resources, many institutions are being forced to adapt and rethink their approaches to sustainability.
For example, Blindside is an independent contemporary art gallery that has operated since 2004, located in the iconic Nicholas Building in the heart of Naarm.
Madeleine Sherburn, the gallery coordinator, explains that Blindside, like many other ARIs, has been grappling with these challenges.
"The biggest challenge is the economic uncertainty," Sherburn said.
"The fear of losing funding is a constant reality," she said.
"Rent is an ongoing concern, especially in a space like the Nicholas Building."
"Despite receiving triennial funding from the City of Melbourne, Naarm and some support from government body, Creative Australia, we are still operating on a tight budget," she said.
The lack of funding stability has left Blindside and many other ARIs in a precarious position.
Blindside has turned to fundraising events, including the annual B-Side fundraiser, where artists donate works for auction, raising much-needed funds for the gallery and the artists themselves.
However, “this does not replace the need for more consistent and reliable funding to support the ongoing work of the gallery,” Sherburn said.
While these financial strains impact the galleries, they also affect the individuals who work behind the scenes.
“There’s a lot of unseen and unpaid labour that goes into running a gallery,” Sherburn said.
"It’s not only an issue for artists to be considered as workers, but there’s also a lack of recognition for arts workers and how much they contribute, often for very little in return.”
A 2022 study by Creative Australia found that 54 per cent of all artists in Australia engage in unpaid arts-related work. Additionally, it found that in the 2021–22 financial year artists earned an average gross income of $54,500 of which less than half of these earnings ($23,200 AU) were from creative work.
In contrast, the Australian Bureau of Statistics found that the median personal income was $55,062, in the 2020-21 financial year.
This struggle is further exacerbated by the limited availability of funding.
As Sherburn said, government grants are highly competitive, and many independent spaces feel the impact of this harsh reality.
“Receiving government funding is an extremely complex and competitive process,” Sherburn said.
Madeleine Sherburn also underlined the tough competition between major institutions and smaller, independent galleries like Blindside.
Sherburn said that more sustainable and equitable funding solutions are necessary for the future.
“The government’s funding for arts organisations needs to be better allocated.[...] More funding is needed, but how much of that will go toward supporting artists directly rather than covering inflation or operational costs?" Sherburn said.
“We are forced to make do with what we have,” Sherburn said.
However, there is hope that in the future new models and approaches may help ensure the survival and growth of these vital cultural spaces.
Dr Rex Butler, an art historian and professor, echoes the sentiment that independent spaces are struggling.
"Independent spaces are now challenged by forms of recession and the decline of the status of the visual arts, there is no doubt about that,” Dr Butler said.
The cuts in funding are driven by broader government austerity measures, a decline in philanthropic donations, and shifting priorities amongst donors and sponsors.
“Both sides of federal politics have much less regard for the arts in general and their importance in our society than previous governments,” Dr Butler said.
Dr Butler said the Whitlam government was a prominent example with strong arts policies, and that the Malcolm Fraser government also advanced the arts.
The impact of this reduced funding is visible in institutions like The Centre for Contemporary Photography (CCP), which had to vacate its Fitzroy location in 2024 after a significant loss of funding from both Creative Australia and Creative Victoria.
However, there is hope that in the future new models and approaches may help ensure the survival and growth of these vital cultural spaces.
The federal government is responding with plans like Revive, a five-year initiative launched in 2023 with millions in new funding for the Arts.
Revive aims to deliver “new momentum so that Australia's creative workers, organisations and audiences continue to thrive and grow.”
As of August this year, more than 70 actions have already been delivered from establishing new national bodies like Music Australia to expanding support for First Nations people.
But Dr Butler said that the reduction in the patronage once enjoyed by the arts has also contributed to the current crisis.
“I also suspect… there isn’t going to be that class of a wealthy, well-off person who wants to start giving their money to the arts, which once was the case.”
Dr Butler highlights a profound change in the arts world, particularly in terms of who is able to afford and support art.
"You certainly wonder about the future of what was once called fine arts," he said.
Despite these challenges, Melbourne’s art community continues to demonstrate resilience.
Artists and institutions are finding new ways to adapt, innovate, and thrive.
“Artists do try to adapt to be honest," he said.
"They try their best. Honestly, they have to... you can see artists subtly adapting, the ones who are ‘successful’"
"They are people of our time, that’s why they are successful," Dr. Butler said.
While the financial challenges remain daunting, evidently there is an enduring passion within the Naarm/Melbourne arts scene.
“I'm always very moved when I go into them [independent spaces] beyond the art to seeing the people who are willing to keep on doing it and their belief in art. It’s very touching because I share, in a weird way, that belief," Dr. Butler said.
