It was held from November 30 to December 4 last year at Lake Repulse.
Many artists have been left unpaid, with festival organisers blaming higher running costs and a typical late surge in ticket purchases not eventuating.
It comes after Gathering of the Godesses, a festival that ran in Tasmania in March 2023, was accused of ripping off performers.
Synergy Festival organisers estimate it will take four months to pay all of the performers.
But financial woes are not the only issues the festival is facing.
Organisers were forced to make a public statement after a First Nations artist called out the festival on delayed payments.
Palawa educators Craig Everett and Trish Hodge hosted a smoking ceremony and welcome to country at the festival, as well as multiple workshops.
They said they discounted their services to Synergy Festival after learning it was struggling financially, and extended their payment deadline to the end of the festival.
But they did not receive payment until over six weeks later.
Mr Everett said the delayed payment affected him differently as an Aboriginal person, and left him feeling their contribution to the festival was "tokenistic".
"They were paying for knowledge that we have actually gathered from our people and our elders, which takes a lifetime," Mr Everett said.
"And then on top of that, they used our culture for the smoking ceremony to be such a big important part of their festival," he said.
He said he was reconsidering whether he wanted to share his culture again.
"I felt like I didn't even want to share any of my culture to anyone anymore, and that's a big part of who I am, sharing my culture to anyone and everyone because I think it's important that it happens," he said.
"I've actually got eight kids and two grandchildren, and a grandchild on the way. It's not like I can sort of sit around and I don't need money and can just live off the land because I'm Aboriginal.
"That's definitely not how it should be."
The ABC spoke to multiple other artists contracted by the festival.
Other artists contacted by the ABC who had not been paid were sympathetic with the organisers, who they described as transparent and honest.
Many referred to the difficult climate in which festivals operate post-COVID, and trusted they would be paid when possible.
'We had every reason to think things would go well', organisers say
In a statement on its Facebook page, organisers said they "humbly apologise for the delay".
"The First Nations people who provided these services are among many passionate and hardworking contributors to our festival," they said.
They said the festival had run at a loss, and they had been expecting patrons to buy up more tickets in the days leading up to the event and at the gate, which did not happen.
"Based on the information at hand, we had every reason to think that things would go well, but they didn’t, and we’re sorry to those that were affected by this alongside ourselves," the statement reads.
Organisers also said they had been waiting for a bond return from Sustainable Timber Tasmania, for the use of its site, in order to make payments.
Additionally, organisers said profits from an upcoming event it was running, which "has been budgeted to run at a profit" would be part of the plan to pay artists what they were owed.
Despite now having been paid, Mr Everett feels he has been used.
"Like they were only using me and Trish and our culture to be able to get ticket sales and to get that tick-a-box type of thing, to say that they've got culture at their event," he said.
"It was just excuse after excuse, and on top of that, they couldn't see that the money side was the lesser thing that we were talking about. The biggest thing that hurt us was how our culture was treated."
Synergy Festival shared it was in financial stress before the event commenced, posting on social media six days before the festival's start date that "pre-festival overheads this year have been a bit higher than usual" and called for more ticket purchases.
"We understand financial constraints, however if it is within your means, please purchase a ticket today or over the weekend," it read.
In a statement to the ABC, Synergy Festival director Daniel Bower said his team "sincerely apologises" and "deeply regrets the impact that these late payments have had on our cultural practitioners and artists".
"I regret any perception of tokenism and assure Craig that his contribution has always been genuinely appreciated over the past six years," Mr Bower said.
He said they recognised "the importance of improving our business model, including our communications and financial sustainability."
It said the event it had planned for Hobart in February was now under review. Payment issues 'not uncommon', Aboriginal artist says
Another Tasmanian Aboriginal artist, Bianca Templar, who had no involvement in the festival, said she constantly faced issues regarding payment for her work.
She said last year a festival she worked at did not pay her at all.
Ms Templar said there was a responsibility on Aboriginal educators and creatives to share their culture.
"A lot of us struggle with this feeling of, 'If I don't do this, who are they going to pull in?'" she said.
"Are they going to start using mainland Aboriginal artwork that isn't applicable to us, are they going to pull in people that aren't known within community?
"It puts us between a rock and a hard place a lot of the time."
Ms Templar said Mr Everett and Ms Hodge's experience was not uncommon.
"Slowly things are starting to change where our contribution is starting to be recognised … however, that's coming at a very slow pace," she said.
"I want to stress the importance of non-Aboriginal people, especially non-Aboriginal people that work in the arts sector, to really spend some time learning about us, about how these things actually affect us in our day to day." If you have a general news tip or feedback, please contact us via this form
