Australia's live music scene is experiencing its biggest crisis in a generation, with 1,300 venues—25% of the national total—closing since the start of the COVID-19 pandemic. The closures include 551 in New South Wales, 256 in Victoria, and 195 in Queensland, according to industry data.
David Barrett, owner of Laundry Bar and Bad Decisions in Melbourne's Fitzroy, says the past eight months have been the hardest in his 13 years in the business. Despite filling venues with patrons, spending at the bar has dropped significantly, making it difficult to cover costs. Barrett reports spending $10,000 a night to stay open while sales fall short.
The cost of living crisis is exacerbating the problem, with higher insurance and supply costs, and consumers cutting back on discretionary spending. Barrett notes that insurance costs and liquor licensing fees have increased dramatically, while drink prices remain similar to previous years. He now works 60-hour weeks, including bartending, to avoid hiring more staff.
A federal inquiry is examining the challenges facing the live music industry. Howard Adams, chair of the Australian Live Music Business Council, has proposed a $1 levy on tickets for major events in large arenas, with funds directed to a charitable trust for grassroots venues. The idea mirrors a UK proposal for a £1 levy on venues over 5,500 capacity to support local live music.
Despite high demand for major acts like Taylor Swift, who attracted over 500,000 attendees in Australia in February 2024, smaller and mid-sized venues are struggling. APRA AMCOS reported a 400% increase in concert income last year, but royalties from small venues are declining. The inquiry continues to explore solutions to sustain Australia's live music ecosystem.
