The newly created Museums of History NSW will undertake an independent review of its art commissions, after axing a $530,000 moat art project in Sydney.
Alex Seton's commission for the Hyde Park Barracks was to have made one of Australia's first colonial buildings into a symbolic island, but it was quietly cancelled in May despite 18 months of work.
Seton, currently in London, has said the decision was a sad loss with broader implications, and also raises questions about the future of the barracks' popular public art program.
The cancellation came as "a result of an internal reassessment of priorities and processes", Museums of History NSW said in a statement to AAP.
It did not directly confirm the future of the program beyond Seton's 2024 installation, but said no artist has yet been chosen for the 2025 commission.
Museums of History NSW chief executive Mary Darwell, who was appointed in June, has instructed that the institution's commissioning approach be subject to an independent review.
The axed moat may mean Museums of History NSW is already in deep water with the Sydney arts community, despite only being set up late last year.
The likes of gallerist Tim Olsen and artist Tony Albert have weighed in on developments online.
"Very sad to see this incredible initiative cancelled," said Albert, who worked on the 2023 commission alongside fellow artist Angela Tiatia.
The NSW government on Friday also axed a Christmas lights festival and the ELEVATE Sydney event, as it works to develop the state's first arts, culture and creative industry policy.