He started his new position yesterday.
Mr Smith (41) moved to Dunedin from Sydney two years ago to help revive the then struggling theatre's fortunes.
He and Lara Macgregor, from Christchurch, were appointed general manager and artistic director in September 2010, following a Creative New Zealand-funded review of Fortune Theatre operations.
The pair quickly turned the theatre's fortunes around, and finished last year in the black.
That operating surplus allowed the theatre to produce a free play for the 2012 Otago Festival of the Arts.
"My time at the Fortune has been a fantastic and an extremely rewarding experience," Mr Smith said.
"The Fortune is a very creative and a wonderful place to work. I've really enjoyed working with a very talented and creative team at the theatre, who produce extraordinary work on a regular basis.
"The theatre has provided me with an incredible opportunity to work alongside many talented actors, directors and other creative people, who have brought pure magic to the Fortune stage."
Before moving to Dunedin, Mr Smith worked as an actor, dancer, singer and director and spent 12 years managing the Sherman Galleries in Sydney.
He replaces long-serving manager Grant Barron at Olveston.
Fortune Theatre Trust chairman Peter Brown said he hoped to announce Mr Smith's successor within the next two weeks.
