Japanese billionaire Haruhisa Handa has withdrawn his funding from Opera Australia (OA) after a 15-year relationship as Patron-in-Chief.

The Australian Financial Review has reported that Handa’s International Foundation for Arts and Culture (IFAC) and OA’s contract will end on 31 December this year. IFAC has supported OA’s annual Handa Opera on Sydney Harbour (HOSH) since its establishment in 2012 with around $1 million each year.

A scene from Handa Opera on Sydney Harbour’s 2026 production of The Phantom of the Opera. Photo © Daniel Boud

OA’s announcement of its Sydney Harbour production for 2027, a revival of Gale Edwards’ 2015 Aida, was delayed. Instead of being included in OA’s 2027 season announcement in August, it was revealed the following month. Aida was the most successful opera presented for HOSH. It was announced as OA’s ‘Sydney Harbour’ production, with no reference to Handa. Instead, the principal partner is the bank HSBC, which has served as a Hero Partner with OA since 2020.

AFR also reported that anonymous sources “close to their negotiations” have cited Handa’s frustration with OA’s programming of musical theatre over opera as a factor in his decision to withdraw.

The programming of musicals has proven commercially advantageous for OA in recent years. This year’s restaging of The Phantom of the Opera was the most successful HOSH production in the event’s history with more than 92,000 attendees, beating the number of attendees at its 2022 debut. OA’s 2025 annual report listed the musicals Hadestown, Guys & Dolls and Rent as three of its biggest box office drawcards for the year, all of which helped to close the $10 million operating deficit the company posted in 2024.

The news arrives after a seemingly more stable stretch for OA following a rocky period for the organisation with the departures of Artistic Director Jo Davies in 2024 and CEO Fiona Allan in 2025. Alex Budd took over as CEO in 2025, Music Director Andrea Battistoni joined the company in January 2026, while its new Director of Opera, Amy Lane, took up her role just last month.

“Opera Australia and the International Foundation for Arts and Culture have worked together to establish Handa Opera on Sydney Harbour as a globally recognised, commercially successful event. This partnership has also created opportunities to foster the next generation of opera performers and practitioners,” said a spokesperson for OA.

“Opera Australia is proud of what has been achieved over the past 15 years and is deeply grateful to Dr Haruhisa Handa and IFAC for their vision and long-standing commitment. Opera Australia will continue this commitment to exploring new opportunities and operatic endeavours and nurturing emerging Australian artists.”

Lyndon Terracini in Millthorpe. Photo © Kieran Gilfeather/AAP

HOSH was established while Lyndon Terracini served as OA’s Artistic Director. Handa’s IFAC currently serves as Principal Partner to Handa Opera at Millthorpe, Terracini’s small-scale opera festival in NSW’s Central West. On 19 October, the festival announced that it would return for a third year in 2027, featuring a four-day program that includes its first full opera (Verdi’s Un ballo in maschera) and international guest star mezzo-soprano Elena Gabouri.

“I am proud to be supporting Lyndon Terracini and his wonderful Handa Opera at Millthorpe,” said Handa. “Lyndon’s exceptional talent, his passion for the operatic art form, his commitment to excellence and his resilience is a model for all to follow both in Australia and internationally.”