More than 100 international and Australian artists who regularly display their works at the renowned Sculpture by the Sea exhibition have launched a scathing attack against Creative Australia, the federal arts funding agency. The artists accuse the organization of operating like an exclusive club after their globally recognized coastal art show nearly faced cancellation due to lack of government support.

The controversy centers on Creative Australia's refusal to provide funding for the annual exhibition, which transforms the scenic Bondi to Tamarama coastal walk into an outdoor gallery. Just one year before its 30th anniversary, Sculpture by the Sea came within days of cancellation due to a $200,000 funding shortfall. The crisis was only averted at the last minute when NRMA stepped in as a major sponsor.

In a strongly-worded open letter directed to Arts Minister Tony Burke and distributed to at least eight federal lawmakers, the artists expressed their shock and disappointment at the funding agency's apparent indifference. "Creative Australia's decision to ignore the globally unique level of interaction between the people of Australia and our artwork shows a disconnect between what Australian artists and the Australian public want from the management of public arts funding in Australia," the letter states.

Among the prominent signatories are acclaimed artist Ken Unsworth, this year's $70,000 Sculpture by the Sea Prize winner James Rogers from Walcha who has exhibited for 21 years, Australian luminary Ron Robertson-Swann, and Sydney-based sculptors Lucy Humphrey and Clara Hali. Artist April Pine, whose work "Sway" is featured in this year's exhibition, also signed the petition. An impressive 85 percent of eligible artists have endorsed the open letter.

The artists challenged the government's reasoning for withholding support, stating: "Few, if any, Australian art exhibitions have Sculpture by the Sea's international reputation with artists around the world." They questioned how Creative Australia, like its predecessor the Australia Council, could "ignore our work year after year and not provide multiyear core funding."

Arts Minister Tony Burke has defended the government's position, citing concerns about artist compensation. "The last information I have received was to have your works included in Sculpture by the Sea you are not paid. In fact, you had to pay them," Burke said. "And I think that should be a question that should be put directly to Sculpture by the Sea." Creative Australia also stated that organizers had not applied for federal funding this year.

However, the artists dismissed this rationale as flawed bureaucratic logic. "It is a strange form of bureaucratic logic to read the Federal Government will not fund the artists in Sculpture by the Sea out of a supposedly heartfelt concern for artists' welfare, when we the artists want to exhibit in Sculpture by the Sea and want the government to fund the exhibition," they argued.

The financial reality for participating artists reveals significant personal investment in the exhibition. On average, each artist spends $15,000 to participate, with costs often climbing to around $25,000 for more monumental works, though some spend considerably less. Queanbeyan sculptor Peter Spelman, who created the abstract painted metal work "Cyan Forest" currently positioned on prime real estate on the Bondi headland, invested $12,000 in his exploration of positive and negative space.

Spelman, who serves as the artist representative on Sculpture by the Sea's board and helped organize the open letter, emphasized the exhibition's unique value. "There are other exhibitions, but this is the best opportunity to sell work and to have public impact," he explained. "No other exhibition has the volume of people coming through the exhibition. I've sold into international collections and sold multiple large-scale sculpture overseas, and into private and public collections in Australia over the past 20 years on the back of Sculpture by the Sea."

The exhibition's business model includes a 40 percent commission on sold works, which organizers say helps cover staging costs. To offset expenses, each artist receives an installation subsidy of $1,250, rising to $3,500 for those who don't sell their work or receive other awards. Artists creating ephemeral works designed to last only briefly also receive support, according to Spelman.

International support for the Australian artists came from sculptors in New Zealand, London, and China, who penned their own letter stating that "no other country has exhibitions that are as appealing to artists from around the world." This global backing underscores the exhibition's international significance and reach.

The dispute reflects broader tensions about public arts funding priorities in Australia. The controversy has intensified following revelations that artist Khaled Sabsabi recently received a $100,000 grant from Creative Australia for a new exhibition. This came just months after the agency reinstated him as Australia's Venice Biennale representative for 2026, following his controversial removal from the position. The grant will enable the western Sydney-based artist to create a major new work for the Samstag Museum of Art in Adelaide in 2027.

The Australian signatories leveled serious accusations against Creative Australia's selection processes, claiming that very few of them applied to the agency because it operates as a "closed shop." They alleged that assessors are "chosen by Creative Australia from a pool of friends and colleagues who understand what is expected of them to keep the pool of Creative Australia's funds available for the same group of friends and colleagues."

In response to the criticism, Creative Australia maintained its position, reiterating that Sculpture by the Sea had not applied for recent funding opportunities, including the Arts Project Investment for Organisations program that closed on September 2. The agency stated that applications are "assessed and based on independent expert advice and according to published criteria," and encouraged organizations to "draw on the feedback provided on past applications." Despite the ongoing controversy, the agency expressed willingness to consider future applications to its investment programs.