‘We have to own this’

MCA director Suzanne Cotter described the reintroduction of ticketed entry as a “gauntlet moment”.

“We have to square our shoulders and own this,” she said.

“We have been looking at all aspects of our business model and philanthropy models, and it became clear in October, having to sign off on the budget for the next year, that we didn’t have any choice. Our responsibility is to be financially prudent while showcasing the best of contemporary art.

‘We had hoped we could delay the decision with some wonderful ‘knight in shining armour’ but it just hasn’t happened, so it’s about being a grown-up and not putting our heads in the sand.’

Suzanne Cotter

Admission fees are a last-resort measure for any cultural institution as they not only suppress visitor numbers but risk a downturn in commercial income from cafes and shops, on which museums rely.

Annual recurrent state government funding currently sits at $4.36 million, representing only 14 per cent of its operating costs, the museum said. Last year, the MCA posted a $2.559 million operating deficit, which it funded from its cash reserves.

Corporate support in that year almost matched overall government contributions of $4.8 million.

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The museum said levels of state and federal government funding had not shifted since 2008 despite “17 years of inflation and immense cost-escalation, a doubling of visitor numbers over the period and a new wing added to the museum in 2012”.

A NSW government spokesperson said the museum received $7 million in direct financial and in-kind support from the government in 2024. This is believed to include peppercorn rent and funding from Destination NSW.

“This year, Create NSW, in partnership with Creative Australia, commissioned an independent sustainability review of the museum to identify operational enhancements to support MCA’s ongoing sustainability and success,” the spokesperson said.

“As with any significant investment from government, the review recommended the MCA prepare a fully evidenced business case that includes transparent financial assumptions and costed initiatives to support its request for additional support.”

Ticketed general admission will likely result in a decline in local visitors to the museum. Cotter expects international visitors, who comprise 40 per cent of its annual visitor figures of around 1 million, to be more resilient.

But she is hoping to leverage corporate or philanthropic support to facilitate free access, for example, one Sunday a month. Free admission was originally introduced in 2000 with the support of Telstra, alongside the introduction of government funding. The corporate support, since switched into programs, was a turning point in reshaping the fortunes of the museum.

“We’ve had supportive conversations with Arts Minister John Graham, however we have been advised there is no money available to increase our funding,” Cotter said.

“We aren’t the only ones struggling; it’s a difficult time for arts across the country, but what we want to remain is strong and not weaken or dilute our offer, and so it’s one of the measures we’ve had to adopt to increase our income streams.”

Since the pandemic, the museum has been forced to close one day a week.

The MCA is an independent not-for-profit established in 1991 by a bequest to the University of Sydney from artist John Wardell Power.