The rising cost of living is forcing many Australians to rethink their spending habits.
This is especially true for younger individuals, who rely on discretionary spending.
The impact of the economic crisis is also being felt in the music festival circuit, which is a vital part of the culture for many young people.
With that in mind, could a rise in Centrelink payments be enough to revive this industry?
The issue has sparked a debate in the country.
A bar owner called for a rise in the Youth Allowance and Jobseeker payments to help young Australians afford to go out and see music festivals.
Hugh Scobie, who owns Ancient World, said that the rising cost of living and increasing rents are some of the factors that are preventing many people from participating in social activities.
The popularity of music festivals has reportedly dropped due to the high cost of living.
According to Scobie, most people are unable to afford to go out. A report by Soundcheck revealed that the high-profile events such as the Splendour In The Grass have also been canceled.
Increasing the Youth Allowance and the Jobseeker payments would help encourage more people to participate in the culture.
The National Arts Survey also noted that the cost of attending a music festival is the most common reason why people don’t go to events.
In 2023, nine out of ten party-goers experienced financial difficulties.
Scobie noted that the high cost of food, petrol, and rent affected the festival audience. Many young people rely on Centrelink for their primary income.
Due to the current economic situation, it is not feasible for young people to go out and socialize with their friends.
On a fortnightly basis, single people receive a payment of around $762.70, while those with no children receive a payment of around $395.30. Depending on their age, income, and living arrangements, the people receiving the Youth Allowance receive around $806.
Scobie suggested implementing a recommendation made by the Australian Council Of Social Service by increasing the payments of Centrelink. It is believed that the most significant increase in permanent payments was implemented on September 20.
For instance, the recipients of the Youth Allowance should receive a $40 increase to match their pension rate.
Senator Sarah Hanson-Young from the Greens supported the idea of supporting music festivals, pointing out that they contribute to the ecosystem of live music and contribute to the employment of artists. She noted that festivals also support various industries such as hospitality and tourism.
It is no surprise then that music festival organizers cite insurance and extreme weather as their biggest concerns when it comes to putting on large-scale events. Climate change and natural disasters are making these types of festivals more unpredictable and difficult to put on, she said.