By Cassandra Morgan and Liz Hobday in Melbourne

Artists are devastated and a NSW coastal town is facing a massive financial sting after Australia’s biggest single-ticket festival Splendour in the Grass was called off.

Just days after tickets went on sale, organisers Secret Sounds issued a statement late on Wednesday confirming the cancellation, promising refunds for ticketholders and thanking them for understanding.

“We know there were many fans excited for this year’s line-up and all the great artists planning to join us, but due to unexpected events we’ll be taking the year off,” the statement said.

The annual music festival at the North Byron Parklands was due to be staged from July 19 to 21.

Tickets went on sale last Thursday, with pop superstar Kylie Minogue among the artists set to perform.

Jessica Ducrou and Paul Piticco from Secret Sounds said they were heartbroken to be missing a year but hoped the festival would return.

Ticketholders would be refunded automatically by ticket seller Moshtix, allowing for extra time over the Easter holidays.

The lineup was announced on March 12 and included Tash Sultana, Turnstile, Angie McMahon, G Flip, Yeat, Arcade Fire, Thelma Plum, Future, Middle Kids, Girl in Red, Hayden James, The Dreggs and Baby Gravy.

Folk duo The Dreggs described the festival’s cancellation as “a devastating hit to the Australian music industry” on Triple J’s Instagram post announcing the news.

DJ and songwriter Hayden James commented, “Love you Splendour”.

News of Splendour’s cancellation was leaked before a scheduled announcement.

The news was a huge blow to not only Byron but the music industry, Byron Shire Council mayor Michael Lyon said.

“They would have an understanding of how many tickets would be sold in that first week (and that) would be a pretty good indication of where they land,” Mr Lyon told AAP.

“It is worrying in terms of the future of festivals and certainly for Byron Shire, (which) has got a proud history of hosting big-name acts and festivals.”

NSW Music Minister John Graham said Splendour’s cancellation was devastating.

“The festival industry is under extreme pressure and I am deeply worried about the health of the festival scene here in NSW,” he said.

“The NSW government offered financial support to help the event proceed this year.”

Falls Festival, also organised by Secret Sounds and hosted in Byron, was cancelled in 2023, but Bluesfest is bucking the trend and kicking off at the beachside town on Thursday.

Splendour is the latest festival to be cancelled after Groovin the Moo organisers were forced to ditch the event’s 2024 tour in February because of insufficient ticket sales.

Splendour in the Grass organisers had to apologise to patrons after the 2022 event, when punters became stranded and bogged as the festival was flooded because of heavy rain.

Secret Sounds is majority owned by global entertainment giant Live Nation, which in 2023 recorded its best results, with revenue up more than a third to US$22.7 billion ($A34.8 billion).

If any company could keep a festival going in the current climate, it’s Live Nation, said author and academic Ben Green, who studies Australia’s live music sector.

Festivals face climbing overheads including insurance, as well as extreme weather, while punters were in a cost of living crisis.

“This is the big one and the one you don’t expect to fold six days after going on sale,” Dr Green said.

More than 25 music festivals across Australia have been cancelled since 2022 – nine of them in NSW – according to data from the Australian Festival Association.