Refund clock ticking for Bluesfest fans as banks outline chargeback rules

TICKET holders chasing refunds after the cancellation and liquidation of Bluesfest Byron Bay are being urged to act quickly as banks warn strict time limits and case-by-case rules will shape whether chargebacks succeed.

Corporate law expert Professor Jason Harris from the University of Sydney said many fans could ultimately recover little or none of their money through the insolvency process itself.

“In a lot of insolvencies, particularly liquidations, the only people that get paid are secured creditors and the insolvency practitioners,” he said.

“All unsecured creditors in those circumstances will often get nothing.”

 

 

The warning comes as insolvency firm Worrells works through the financial position of the long-running Easter festival following confirmation the 2026 event will not proceed.

While ticket buyers can register as creditors, Professor Harris said they typically sit near the back of the repayment queue because they do not hold security over company assets.

“Insolvency’s not fair,” he said.

“Breaking promises is not fair.”

 

 

Attention has now shifted to whether chargebacks through banks could offer a more realistic path to recovering losses.

The Australian Banking Association said chargeback rules are governed by global card schemes such as Visa and Mastercard rather than individual banks.

“Chargebacks involve a customer asking their bank to apply to the card scheme to reverse a charge,” an ABA spokesperson said.

Banks assess disputes under scheme rules, with outcomes depending on factors including transaction timing, ticket terms and how purchases were processed.A CommBank spokesperson said customers can raise a dispute through the bank’s app or online banking platform if an event is cancelled and a refund is not provided.

“Customers may be asked to provide information such as proof of cancellation or correspondence with the organiser, and we’ll then assess the request in line with card scheme rules to determine whether a chargeback is available,” the spokesperson said.

 

 

National Australia Bank said customers may be able to request a chargeback where paid services are not delivered, but stressed claims are assessed individually.

“Chargebacks form part of the standard card payments system and are assessed on a case-by-case basis in line with scheme rules set by Visa and Mastercard,” a NAB spokesperson said.

Depending on the bank and card type, disputes may need to be lodged within weeks or months of a transaction appearing on a statement, prompting warnings that affected customers should act promptly.

Ticket holder Carlos McCarthy said he had been unable to speak to a real person at his bank despite several attempts but had still lodged a chargeback request.

“I’m totally gutted,” he said. “I was really looking forward to it.”

 

 

Professor Harris said uncertainty around refunds could have wider consequences for the live music sector, with high-profile collapses potentially making audiences more hesitant to buy tickets in advance and worsening financial pressures on promoters.

“There might be people who lose their money here and say, ‘That’s it, I’m never going to one of these events again’,” he said.

He said a post-pandemic trend toward last-minute ticket purchases had already made it harder for organisers to secure the upfront revenue needed to stage large events.

 

 

Industry guidance such as Live Performance Australia’s Ticketing Code of Practice encourages promoters to hold ticket funds in trust until events take place, although compliance is voluntary.

Professor Harris said requiring ticket proceeds to be held in trust could help reduce the risk to consumers if festivals are cancelled.

“If we want to stop this happening again, we make sure ticket sale proceeds are paid on trust,” he said.

Professor Harris also said regulators could ultimately examine the circumstances leading to the collapse.

“Given this event has had financial problems in the past, should ASIC be investigating?” he said.

 

 

Byron Shire mayor Sarah Ndiaye said the cancellation was likely to affect local businesses but urged visitors who already had Easter travel plans to still come to the region.

“Lots of people already have flights and accommodation booked and we are encouraging people not to cancel and come anyway,” she said.

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