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This research examines three political moments in the Australian theatre sector as turning points in contemporary understanding of the sector’s financial foundations. Socio-cultural and economic conditions leading to the establishment of The Australian Elizabethan Theatre Trust in 1954, the instigation of the Industries Assistance Commission Inquiry in 1976, and the commissioning of the Major Performing Arts Inquiry in 1999, and their impact on the theatre sector, are reviewed in this paper. These political moments took place against changing economic policies in Australia. By reviewing the economic transition from Keynesian 'welfare' to economic rationalism, the interventionalist nature of these policy moments and their effect on the artistic vibrancy of the sector is understood. This paper reveals a tension between the sector’s Keynesian foundations, which underpinned the Trust's intentions to establish a financially sustainable sector, and the now dominant economic rationalist model which restricts the performing arts’ capacity to flourish. Through analysing secondary documents and scholarly discussion, this research reconsiders the legacy of the Trust as a key policy landmark. It proposes that The Trust succeeded in delivering artistic outcomes, but failed in its financial objective to establish a sustainable sector. The role of the Trust is often misconstrued in scholarly and professional discussions about the necessity of arts funding, and by reconceptualising these political moments as interventions of policy, a new perspective of the foundation of Australian arts funding can be appreciated.
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