It is another blow to Australia's ailing music industry with Falls Festival and Groovin the Moo among other festivals to have canned events in recent years, while Bluesfest has confirmed its 2025 edition in April will be its last.
More than 40 music festivals across Australia have been cancelled since 2022, according to data from the Australian Festival Association.
Splendour in the Grass, which is held near Byron Bay in northern NSW, has been previously staged over three days in July.
Organisers cancelled the 2024 event, with a post on Thursday announcing the popular festival wouldn't return in 2025.
View this post on Instagram A post shared by Splendour in the Grass (@splendourinthegrass)
"Sorry it's been so quiet around here, but we had a little holiday … finally," a social media post said.
"The rest of the festival team have still been busy cooking up some awesome new things for music lovers in Australia, but Splendour needs a little more time to recharge and we won't be back in 2025.
"Think of it as a breather so we can come back even bigger and better when the time is right."
The cancellation was devastating and festivals such as Splendour were struggling to attract artists, the Australian Festival Association said."The cost of producing Australia's largest festival, with a capacity of 50,000, comes with significant risks," a spokesman said.
"We respect and understand their decision to pause, allowing them to return stronger when the time is right."
The association said artists were choosing not to perform at festivals."Globally, we are seeing a shift in the live music landscape, with artists increasingly opting for headline arena or stadium tours," the spokesman said.
"This has impacted festivals of Splendour's size in attracting the calibre of talent audiences have come to expect.
"Splendour's decision highlights the need for the federal government to extend Revive Live funding to ensure the sustainability of festivals nationwide."
The Greens also called for more government support for music festivals.
"We've seen this sad movie before and it's a warning to policy makers that unless we see reform that can actually revive the live music sector, 2025 could be another wipeout year of festival cancellations," Senator Sarah Hanson-Young said.
Splendour also did not take place in 2020 and 2021 because of the COVID-19 pandemic.
Festival organiser Secret Sounds is majority-owned by global entertainment giant Live Nation.
"The festivals team has our full support to bring Splendour in the Grass back when they feel it's right," a Live Nation spokesman said.
