In February 2025, Creative Australia announced the selection of artist Khaled Sabsabi and curator Michael Dagostino to represent Australia at the 2026 Venice Biennale. This decision was reversed shortly thereafter, igniting a contentious debate over artistic freedom and political influence in the arts.

Khaled Sabsabi, a Lebanese-born Australian artist with a career spanning over 35 years, is renowned for his work in video, mixed media, and installation art. His selection, alongside curator Michael Dagostino, was initially celebrated as a significant achievement for Australia's representation on the international art stage.

The controversy emerged following scrutiny of Sabsabi's earlier works, particularly the 2007 video installation "You," which features Hassan Nasrallah, the former leader of Hezbollah. Additionally, his 2006 piece "Thank You Very Much" includes footage of the September 11 attacks. These works led to political criticism, notably from Senator Claire Chandler, who questioned in Parliament why the government was allowing an artist who highlights a terrorist leader in his artwork to represent Australia internationally.

In response, Creative Australia's board unanimously decided to rescind Sabsabi and Dagostino's selection. The board stated that while they advocate for freedom of artistic expression, they believed that a prolonged and divisive debate about the selection could pose an unacceptable risk to public support for Australia's artistic community and undermine their goal of uniting Australians through art and creativity.

The decision sparked significant backlash from the arts community. The National Association for the Visual Arts (NAVA) condemned Creative Australia's actions, stating that the lack of transparency and failure to consult the artistic team raised serious concerns. NAVA emphasized that revoking Sabsabi's selection without meaningful dialogue undermined the obligation to protect artistic freedom.

Prominent figures in the arts sector also expressed their dismay. Suzanne Cotter, director of the Museum of Contemporary Art Australia, criticized the lack of transparency in Creative Australia's process, noting that the withdrawal had major ramifications for the arts in Australia and the country's international reputation.

The Australian Museums and Galleries Association (AMaGA) expressed extreme concern over the decision, affirming their commitment to supporting creative freedom and providing platforms for diverse voices and perspectives. They called on Creative Australia to reverse the decision and urged all stakeholders to defend essential freedoms and ensure that expert independent selection processes are upheld.

The controversy led to several resignations within Creative Australia. Mikala Tai, head of the visual arts department, and program manager Tahmina Maskinyar resigned in protest. Board member and celebrated artist Lindy Lee also stepped down. Simon Mordant, a former Australian commissioner at the Venice Biennale, resigned as an international ambassador and major donor, stating he was appalled by the decision to drop Sabsabi.

Sabsabi expressed profound sadness over the decision, emphasizing that his works have been misrepresented. He stated that his artworks are about the brutality of war and the sensationalism of propaganda, and that it's dangerous when artwork becomes politicized and weaponized. Sabsabi also highlighted the personal and professional impact of the decision, noting that it was heartbreaking to have the opportunity taken away.

The incident raises critical questions about the balance between supporting artistic expression and navigating political sensitivities in publicly funded art institutions. It also highlights the potential impact on Australia's international reputation and its commitment to cultural diversity and freedom of expression. The controversy underscores the need for transparent decision-making processes within arts funding bodies and the importance of defending artistic freedom in the face of political and public pressures.