Return to Rio promoters say lifeline thrown to NSW music festivals had ‘nothing’ for smaller events

Promoters for a popular electronic music festival cancelled this year due to surging costs say boutique events such as their own could soon be gone for good after they missed out on cash included in an industry lifeline from the NSW government.

Amid a growing number of abandoned or postponed events, it was revealed last week that large-scale music festivals across the state can share in $3 million in emergency funding assistance.

The cash grants of up to $500,000 are available for festivals catering to 15,000 people or more over the next two years.

On top of the cash injection, the state government says it is reforming the Music Festivals Act to prioritise the health and safety of event-goers and the economic sustainability of festivals.

NSW Police will retain the “ability to recommend safety and law enforcement measures” but an amendment to the Act will allow organisers to appeal costs and conditions put on their events if “a festival’s economic viability is under threat”.

The government is also removing the “subject” festival designation from the Act, which the Australian Festival Association (AFA) said “imposed overburdensome restrictions, excessive costs, and biased treatment by police and liquor regulators”.

Return to Rio, licensed for 4,500 attendees, was set to be held on the Hawkesbury River in 2024 but was put on ice in May when it became clear it was financially unviable to run.

Co-founder Ricky Cooper said his team — which has previously attracted local and international talent including The Martinez Brothers and Sneaky Sound System — could see “nothing” in the announcement “that will directly impact us”.

“It’s so disappointing that the financial funding from the government will only benefit the larger mainly international corporations, while the local independent brands receive zero support,” Cooper told 7NEWS.com.au.

Cooper said “over-regulation” had increased policing and health fees beyond $300,000 in 2023 and, even with a new appeals process, he is unconvinced costs will be kept down.

“They did say that decisions will now be able to be appealed, although we were also asked to do this last year and were immediately refused,” he said.

NSW Police previously told 7NEWS.com.au it sets fees on a “not-for-profit” basis, aiming only to claw back the cost of personnel and resources used, and to ensure normal services to the community are maintained.

Cooper said “global hyperinflation” had sent running costs up, while cost of living pressures meant it was “harder than ever” to attract ticket buyers.

“The excessive costs we have to pay (NSW) authorities are unlike anywhere else in the world,” he said, adding the “sad reality” of the current trend is that smaller diverse and boutique events will “die out”.

“We could go on about supporting the extended music ecosystem and the local regional businesses, but mainly we believe that everyone has the right to enjoy the boutique music festival experience ... and we hope that one day our children will be able to, too,” Cooper said.

The AFA was more optimistic, saying the funding and reforms were a “gamechanger” for the industry and a “turning point” in the relationship between the state government and festival organisers.

But it said a “lack of transparency and understanding in determining user-pays police numbers remains a concern” and that it will continue to “advocate for a more equitable approach”.

The state government announcement comes after several events, including Splendour in the Grass and Groovin The Moo, were scrapped.

Music and the Night-Time Economy minister John Graham said industry challenges “have been felt acutely in NSW thanks to overlapping and confusing regulations”.

“We made a commitment to review the Music Festivals Act, and now that review is complete, we are introducing these reforms to strengthen our support for these vital live music events,” Graham said

“Through these proposed amendments, our music festival funding package, and our ongoing Vibrancy Reforms, we are seeking to make NSW a more vibrant place for live music to thrive.”