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Unspent SXSW Sydney funds must support local innovation initiatives

15 January 2026
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Gurmesh Singh 
Acting Shadow Minister for Tourism 
NSW Nationals Leader 

Jacqui Munro 
Shadow Minister for Science and Technology 

Yesterday’s announcement by SXSW Sydney that there would be no future festival in NSW has come as a shock to innovation, technology, arts and business communities. 

SXSW Sydney has been cancelled under the Minns Labor Government just three years into a potential five-year contract, raising serious questions about the reasons behind the decision and the use of taxpayer’s money to fund the enterprise. 

The unexpected announcement came following ongoing questions from the Opposition about the number of ticket sales generated by the festival, criticisms about the lack of collaboration with the local innovation ecosystem and concerns about the role of Destination NSW in providing oversight, given reports that the festival was funded by the government to the tune of $12 million. 

The NSW Opposition is now calling on the Minns Labor Government to immediately re-allocate the remainder of the SXSW Sydney contract funds to local innovation initiatives like Spark Festival, Fishburners and Startup Muster. 

Acting Shadow Minister for Tourism, Gurmesh Singh said, “Instead of supporting jobs, investment and international visitation, the Minister has allowed this flagship event to collapse with no clear plan to replace it.” 

Mr Singh said, “SXSW Sydney was an initiative of the former Liberal and Nationals Government, who understood the potential of bringing one of the world’s largest industry festivals to New South Wales.” 

“Under the Minns Labor Government’s stewardship, the long-term opportunity offered by SXSW Sydney has been squibbed,” he said. 

Shadow Minister for Science and Technology, the Jacqui Munro, said, “Axing SXSW Sydney is yet another example of the NSW Government talking up innovation while failing to back it in.” 

Ms Munro said, “The New South Wales Liberals and Nationals have consistently supported the local innovation ecosystem, from setting up grants programs like MVP Ventures to creating a visionary plan for Tech Central, a legacy which has been trashed under Minns Labor Government.“ 

“While the Minns Labor Government continues to show a disturbing willingness to allow the local innovation sector to go unfunded and unsupported, the NSW Liberals and National will fight for local enterprise and entrepreneurialism, which underpins a prosperous society and a productive economy,” she said. 

SXSW Sydney has publicly stated that the festival has generated $267m for the New South Wales economy since 2023, which begs the question, at what cost has the festival been cancelled? 

The NSW Opposition has put urgent questions to the Minister for Tourism to explain why the SXSW Sydney cancellation occurred, what steps were taken to improve the festival’s outcomes and where will the remainder of the contract funding be allocated. 

Authorised by Chris Stone, Liberal Party of Australia, NSW Division, Level 2, 131 Macquarie Street, Sydney NSW 2000.

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