A flag-raising ceremony to mark NAIDOC Week at Port Kembla's Hill 60 was cancelled on Sunday due to a lack of funding.
Reuben Brown, chairman of Korewal Elouera Jerrungarugh, said $1600 had been received from Wollongong City Council and BlueScope but that the state government had ignored a request for a further $4000 to hold the event.
The ceremony, which in past years has had jumping castles, a marquee and barbecue, marks the traditional July 13 annual meeting of elders at Hill 60.
It was the first time the event, which attracts between 80 and 100 aboriginal adults and children, had been cancelled.
However, last year, numbers were down due to a reduction in funds after the forced scrapping of the children's entertainment.
Mr Brown said he would contact the state government with the view of rescheduling the event at a later date, otherwise the money already received from the council and BlueScope would be returned.