The gig tax: Will insurance kill live music in Melbourne’s east?

It’s a cool, sunny Friday afternoon in Belgrave. Sooki Lounge part-owner Stephen Crombie brings tables, chairs and heaters from inside the venue to the footpath in preparation for the evening’s trade.

One of Australia’s enduring rock bands, The Fauves, are on tonight. They formed in 1988 and, according to their website, are “still alive”.

Crombie and his team have been in the news in recent months after introducing a $1 levy on all tickets to help defray rising costs, including public liability insurance.

“We were the first venue in Australia to do that,” he told the Eastern Melburnian. “We won’t be the last.

“If we go back three years ago now – with no claims over 12 years as well – our public liability was $15,000. Over the years, it has drastically increased, [and is] now $65,000.”

Crombie said the levy would raise about $20,000 annually.

Bands continue to rip up the stage at Sooki Lounge - for now

Sooki Lounge’s entertainment booker and head of touring for Australian promoter and booking agency Destroy All Lines, Chris O’Brien, said venues were having to close across Melbourne due to rising costs.

“[The $1 levy] has never been tried before, but it’s a last, desperate attempt to find a way to bring another income stream in so we can keep the lights on,” he told the Eastern Melburnian.

When asked about Australian music festivals, O’Brien said there was still shaky ground ahead.

“We have seen a blood bath in recent years with so many major festivals going bust,” he said. “[The music industry receives] no support from governments even after constant lobbying.”

Finding a way forward for live music

A 2022 Music Victoria report stated that the live music industry in Victoria generated $2.55 billion for the local economy in 2019. Since then, Covid, multiple interest rate rises and inflationary pressures have conspired to make life more difficult for venue operators.

The industry is still bouncing back from Covid, according to Dale Packard, General Manager of Music Victoria.

“Some parts are thriving; others are still shaky. Insurance is definitely one of the pressures holding things back because it affects how many shows can go ahead.”

He said Music Victoria was working with the government on potential solutions including pooled insurance.

“If we keep pushing for support and solutions, I think we’ll see the scene survive and adapt, even if the road ahead is bumpy.”

Is the future of live music heading in the right direction?

O’Brien believes the demand for live music is “as strong as ever, but it is also more expensive to put concerts on with all these extra costs”.

Crombie says government intervention is essential, and he encouraged people to see bands at local venues.

“Go see live music, because there’ll be a point where it’s Taylor Swift or nothing.”