A beloved yet cash-strapped public art trail has been accused of not paying its artists properly, with the federal government not interested in funding a bailout.

Sculpture by the Sea warns its annual show - a transformation of Sydney's Bondi to Tamarama coastal walk into an open-air art exhibition - will not go ahead unless it raises $200,000 in the next two weeks.

Though the event draws almost 500,000 visitors each year, its founder David Handley says federal arts agency Creative Australia had shown "indifference".

Federal Arts Minister Tony Burke hit back on Thursday, saying Sculpture by the Sea had not applied for funding and the new national cultural policy, called Revive, prioritises organisations that pay creators.

"For too long, artists have been expected to work for free, for

See Full Page