NSW Government Firmly Rejects Liberals’ Call To Review Mardi Gras Funding

The Minns government has refused to heed calls from the NSW Liberal party to review their funding commitments to the Sydney Gay and Lesbian Mardi Gras Parade.

With their 2026 program set to launch next week, the Sydney Gay and Lesbian Mardi Gras has played an important role in Sydney’s culture, community, and economy for 48 years.

A statement on Thursday from Shadow Minister for Arts, Chris Rath, called for the whole organisation to be defunded. 

“What should be a major tourism attraction for Sydney is being hijacked by left-wing extremists who are using their positions to import foreign conflicts to our city,” he said.  

 “It’s unfortunate this is having an impact on the viability of the festival.

“We call on the NSW Government to review its funding commitment to Sydney Gay & Lesbian Mardi Gras and ensure that the organisation operates in line with the broader community expectation and in the best interests of Sydney and NSW.” 

The NSW government has been supporting the Gay and Lesbian Mardi Gras under Labor and Liberal leadership since 2009, with last year’s Parade attracting more than 30,000 visitors to Sydney and injecting over $39 million into the NSW visitor economy, with 11,000 people participating across more than 180 floats.

In 2024, the government and the City of Sydney delivered a vital $1.1 million recovery package for the festival’s 2025 program amidst increased event production and delivery costs, and reduced ticket sales in the cost-of-living crisis.

The NSW Liberals took part in the 2025 Parade,

Cancelling Parade would be “devastating” to city’s reputation

Minister for Heritage Penny Sharpe said the Rath’s statement was an extraordinary, disappointing step for the Liberal Party.

“I don’t know what’s happened to the opposition today, I think there’s been a bit of a brain explosion,” she said. 

“To suggest that the New South Wales Government should review its funding commitment to the Sydney Gay and Lesbian Mardi Gras based on a group of people who do not represent all of the board, or indeed all of the membership of Mardi Gras, is an extraordinary step.

“The Mardi Gras is an inclusive parade, but it’s also a festival that challenges us to do better, and to ask the question and answer the question about how there can be a place for every single person in New South Wales, no matter what their sexuality and no matter what their gender is, and that is what’s so important.”

Arts Minister John Graham said cancelling the Parade would be “devastating to Sydney’s reputation around the world”, and joined Sharpe in calling for the Leader of the Opposition to reverse their position.

The call comes after a difficult fortnight for Mardi Gras, with their popular Parade after party being cancelled after financial and logistical difficulties, and conflict between Board members.

Last year’s Annual General Meeting saw members narrowly vote in favour of a motion proposing the organisation transition to a publicly funded model, ceasing their ties to corporate sponsors.

Mardi Gras CEO Jesse Matheson said the organisation welcomed the NSW Government’s clear statement of support.

At a time when festivals and Pride events across the country are facing existential pressures, public funding is more important than ever,” he said.

“Mardi Gras stands as a global beacon of inclusion, visibility and celebration. As we head into an ECSTATICA 2026 Festival, artists across Sydney are rehearsing, community groups are preparing, and our team is focused on delivering a powerful, joyful season that reflects the full diversity of our communities.

“We look forward to welcoming hundreds of thousands of people to Sydney this month for a Festival that celebrates connection, creativity and pride, and showcases the cultural energy that Mardi Gras brings to the city each year.”