The Broadway musical Waitress, starring Rob Mills and Natalie Bassingthwaighte, announced on June 23, 2024, that its Melbourne run will conclude on July 19, 2025. The production will not proceed with its planned Sydney tour in August 2025.

John Frost, Chief Executive of Crossroads Live Australia and producer of Waitress, stated that attendance and box office revenue were insufficient to cover production costs. He said, "whilst audience enthusiasm for our work remained strong, attendance levels and box office have not been sufficient to support the cost of the production."

Suzanne Jones, CEO of Jones Theatrical Group, which stages musicals like Pretty Woman and Book of the Mormon in Australia, commented on the rising expenses in the industry. Jones said, "The market is there, but the costs are rising faster than the ticket prices are, and that's just a squish." Jones further elaborated, "Freight costs, labour costs – all of those things are going up at a greater rate than ticket sales are."

Jones also discussed the high costs associated with producing musicals. She said, "Musicals cost tens of millions of dollars to get on the stage – the Wickeds and the Hamiltons didn't get written on a Saturday and put on on a Monday." She stated, "I don't think taxpayers should support commercial musicals simply because they're musicals, as much as I love them." She added, "I think government should support industries that create jobs, attract investment, generate tourism and deliver a return to the economy."

Other theatrical productions have also adjusted their schedules; Dear Evan Hansen canceled its Canberra and Adelaide tour legs due to ticket sales. Additionally, Back to the Future recently concluded its tour earlier than planned.

Why It Matters

The cancellation of the Sydney tour for Waitress and the early closure of other productions reflect financial pressures within the Australian theatrical industry. The primary expressed reason for these changes is that rising production costs are outpacing ticket sales, impacting the commercial viability of large-scale musicals. The situation affects employment across various roles, including performers, musicians, technicians, and administrative staff.

The discussion around tax incentives in Australia for live performance productions suggests a potential mechanism to address these challenges. Australian films receive up to 40% tax offsets on production costs, while the games and television industries receive 30%. The UK introduced Theatre Tax Relief in 2014, allowing companies to claim 45% tax deductions for touring productions and 40% for non-touring productions. Analysis shows that this relief generated an additional £163 million in investment for UK theatre from £38 million in one year. A 2024 analysis by Live Performance Australia found that a 25-40% tax offset in Australia could generate additional economic activity, create 4,650 new jobs, and increase new productions by up to 73%.