Queensland’s Caloundra Music Festival called it quits at the end of June, the latest in a string of cancellations that includes big events such as Splendour in the Grass, Groovin’ the Moo and Falls Festival.

The live music industry has had to contend with soaring costs, last-minute ticket sales and extreme weather events.

Organisers of some of Australia’s longest-running music events, including Tamworth Country Music Festival and Port Fairy Folk Festival will front the parliamentary hearing on Friday.

A separate senate inquiry into the national cultural policy also scrutinised the industry in April and was told operational costs had spiked by almost half, while insurance premiums had risen tenfold.

The senate committee has called for immediate funding for the sector and for the government to lead negotiations between insurers and festival organisers to reduce premiums.

The federal budget in May allocated $8.6 million to support live music venues and festivals.

The average cost of running a music festival is $3.9 million, according to Creative Australia research, but 35 per cent of events lose money, with a median deficit of $470,000.