Australian Theatre Industry Urges Government Tax Reform as Major Musicals Cancel Amid Rising Costs]

Australian Theatre Industry Urges Government Tax Reform as Major Musicals Cancel Amid Rising Costs]

Australia’s theatre industry is calling for urgent tax reform as two major musicals and a $20 million opera cancelled performances within a week, citing escalating costs and weak box office returns.

The Broadway musical Waitress, featuring Rob Mills and Natalie Bassingthwaighte, will conclude its Melbourne run on 19 July without expanding to Sydney as planned. Meanwhile, Beetlejuice, created by Australian artist Eddie Perfect and previously staged in London and on Broadway, is cutting its Brisbane closure three weeks short and abandoning planned tours to Perth, Adelaide, and Sydney.

Both productions pointed to mounting financial pressures including soaring production expenses, touring costs, interest rate impacts on consumer spending, and shifting ticket-buying habits. Crossroads Live Australia CEO John Frost, producer of Waitress, noted that while audience interest remained strong, insufficient attendance made the show financially unviable.

Michael Cassel Group, producer of Beetlejuice, said the logistical burden of touring across Australia’s vast distances had become unsustainable. “While audience response has been positive, the current economic climate and the demands of moving a production of this scale simply weren’t justifiable,” the company stated.

The cancellations follow the high-profile withdrawal of the $20 million Aida opera from Adelaide’s 2027 schedule, despite 17,000 tickets already sold. TEG Live’s touring head, Claudia Coffey, revealed the company lost $2 million and five years of planning, citing unmanageable freight and travel expenses in light of the Iran-Israel conflict.

‘Hundreds of people will be out of work’

The cancellations threaten hundreds of jobs across the supply chain. Graeme Kearns, CEO of Foundation Theatres, said Sydney’s Capitol Theatre and Melbourne’s Lyric — slated for upcoming shows — could stay dark for 30 of the next 40 weeks. “From performers and musicians to wardrobe, staging crews, and front-of-house staff, this will devastate many people,” he said. “Finding alternative programming in such a tough environment is extremely challenging.”

Kearns added that discretionary spending on live entertainment remains particularly vulnerable amid cost-of-living pressures: “Buying a ticket for a show is at the top of discretionary expenditure — and convincing people to try something new is harder than ever.”

While some fans expressed disappointment over missed opportunities to attend shows, producers say rising overhead costs continue to outpace ticket price increases. Suzanne Jones, CEO of Jones Theatrical Group (producer of Pretty Woman and Book of Mormon), highlighted the disparity: “The market is there, but freight, labor, and other costs are climbing faster than ticket sales — and that gap is unsustainable.”

Other recent cancellations include Back to the Future and Dear Evan Hansen, which abandoned legs in Canberra and Adelaide.

‘Reform would help’: industry calls for UK-style tax offsets

Industry leaders are pushing for tax incentives akin to Britain’s Theatre Tax Relief (TTR), which offers up to 45% deductions for touring productions. Introduced in 2014, the UK scheme reportedly generated over £163 million in additional theatre investment from just £38 million in relief.

Australian films already receive up to 40% tax offsets, while TV and games receive 30%. Jones argued that commercial theatre delivers significant public value: “It creates jobs, attracts tourism, and drives economic return — which is exactly why governments should support it.” According to Live Performance Australia, a 25–40% tax offset in Australia could generate 4,650 new jobs and boost local productions by up to 73%.

The Media Entertainment and Alliance (MEAA), which is supporting affected cast and crew, also backs tax reform but emphasizes the need for greater audience engagement. The union proposes a “cultural pass” offering young Australians up to $200 in ticket vouchers. “For a family of four, a night out at the theatre can cost $500 to $1,000,” said MEAA CEO Erin Madeley. “We must make live performance accessible.”

Federal Minister for the Arts Tony Burke acknowledged the pressures: “These are pivotal conversations for the next National Cultural Policy. The impact of cost-of-living pressures on arts attendance must be front of mind.”

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