The Albanese Government has unveiled a $1.1 billion arts and culture package in the 2026–27 Federal Budget, headlined by increased funding for Creative Australia, targeted support for national collecting institutions and new investment in cultural infrastructure projects across the country.

Budget papers show arts and cultural spending will total $4.6 billion over the forward estimates, with major commitments directed toward museums, archives, screen production and First Nations initiatives.

Creative Australia will receive a $14.7 million increase in base appropriations, rising from $311.8 million in 2025–26 to $326.5 million in 2026–27. Total expenses for the federal arts agency are forecast to reach $339.3 million next financial year, including $286.9 million in grants and investment programs.

The increase continues the rollout of the government’s national cultural policy, Revive, with funding tied to new bodies including Music Australia, Writing Australia, First Nations Arts and Creative Workplaces.

Creative Australia’s average staffing level will rise slightly from 159 to 163, while the agency has set ambitious targets for the coming year, including support for 525 artists and organisations to create new work and $35 million in investment for First Nations artists and organisations.

The National Film and Sound Archive, Canberra. Photo supplied

National collecting institutions emerged as major beneficiaries of the budget. The government has allocated $10.1 million over two years to the Australian National Maritime Museum for urgent repairs to its Darling Harbour site. The National Film and Sound Archive of Australia will receive $9.9 million over three years to improve storage for its stock of potentially dangerous nitrate-based film material.

The Museum of Australian Democracy will receive $3 million for centenary commemorations marking 100 years since the opening of Old Parliament House.

At the same time, several institutions face tightened staffing and operational budgets. Average staffing at the National Film and Sound Archive is expected to fall from 256 to 226, while staffing at the National Museum of Australia will decline from 257 to 216.

The budget also includes continued federal backing for major cultural infrastructure projects, including the second $25 million instalment toward The Fox contemporary art museum within Melbourne Arts Precinct and an initial $5 million contribution toward a new Aboriginal Cultural Centre in Perth.

Additional measures include funding for two Holocaust museums in Queensland and Tasmania, ongoing support for the Regional Arts Fund and Indigenous language initiatives, and $900,000 for the Office for the Arts to begin developing a potential new National Arts and Culture Strategy ahead of Revive’s expiry in 2027.

Sydney Film Festival 2025. Photo © Belinda Rolland

Screen Australia will receive total resourcing of $113.6 million in 2026–27, a slight decrease from the previous year’s $114.3 million, as the federal agency navigates mounting pressures on the Australian screen sector. Despite tightening conditions, overall expenses are projected to rise to $95.9 million, with the agency maintaining support for drama, documentary, children’s content and digital games development.

The budget papers highlight “significant structural change” across the local and international screen industries, citing rising production costs, consolidation among global streamers and broadcasters, and increasing international competition for production incentives. These pressures have particularly affected Australia’s independent production sector, with Screen Australia noting widening financing gaps and declining commissioning activity.

Against that backdrop, the agency says it will prioritise “impactful funding programs” and continue investing in First Nations storytelling, direct-to-audience content and digital games. Screen Australia will also expand its research program, including the forthcoming Screen Currency report examining the economic and cultural value of Australia’s screen and games industries.

Funding targets include support for 225 new Australian screen projects and $58 million in production investment.