Over the next four years the not-for-profit will receive $125,000 per annum, to continue their work in bringing diverse performance opportunities to the region (such as the Spiegeltent) and developing new works of local significance.

This is an increase from $81,500 handed out annually for the previous three years.

Minister for the Arts Don Harwin said creative industries have struggled during the COVID-19 pandemic and the 2020/2021 Independent Arts and Cultural Organisations (Multi-Year Funding) provides a future-proof plan for the revival of the arts sector.

"This is the security blanket the sector needs right now," Mr Harwin said.

Read More: How these Illawarra arts troupes kept afloat during a pandemic

Last month, Merrigong artistic director Simon Hinton told the Mercury the company was experiencing its "darkest hour" with an expected $4 million downturn in revenue by the end of the year.

Due to the COVID-19 pandemic, 380 performances have been cancelled.

In total, 58 organisations - across 33 metro Sydney, 14 regional NSW and 11 western Sydney - will benefit from this round of multi-year funding by the government.

Read More: Sing and dance all you want with this lounge-room concert series

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