Why a chronically underfunded arts sector will make NZ poorer – and duller

The New Zealand arts sector is facing significant challenges due to chronic underfunding, according to recent reports from Creative New Zealand. The recent funding round granted just over NZ$104 million over two to three years to 94 applicants, far less than the $201 million initially requested. This represents a stark contrast to previous programs, with many established organizations like the Auckland Philharmonia Orchestra and New Zealand Opera receiving substantial funding, while others, such as the youth theatre company Massive, saw a nearly 60% reduction.

Only 10% of the funding round went to groups based in the South Island, leading to disappointment and confusion for some, like the Dunedin Arts Festival, which received no funding for the first time in its history.

The arts sector is crucial for economic growth, with public investment in the arts generating a $3.20 tax return for every dollar invested. However, the sector remains underfunded compared to other areas. The government has trimmed its budget, cutting $27 million from the Ministry for Culture and Heritage over four years. In response, Creative New Zealand has undergone a radical internal restructuring, cutting a third of its workforce and devolving funding to regions, despite facing political pressure to increase spending on administrators.

As the national population grows, government funding for Creative New Zealand has remained stagnant for two decades, and the 2026 budget sets a tax credit cap on charitable donations. To address these issues, other countries are exploring new policy ideas, such as Ireland's Basic Income for the Arts scheme and Australia's tax incentives for live performance. New Zealand must consider expanding support for the arts as part of its election agenda.