Planning is under way to deliver the festival, set for March 17 to 27, at "peak Omicron" if necessary, although it was up to each event to decide whether to go ahead or not.
"We’ll support them either way as best we can," he said.
To help reduce the risk, the festival would no longer hold an in-person programme launch or opening night party.
The move to the Red traffic light setting and the subsequent cancellations had had a "serious impact" on the arts sector and people’s wellbeing.
"The additional Government support will be huge ... but creatives are usually the most vulnerable to economic turbulence, " Mr McMillan said.
Arts practitioners and organisations remained "anxious, worried, and gutted".
"The package announced yesterday was badly needed. I’m really pleased that it includes more support for independent practitioners, many of whom weren’t eligible for previous schemes."
Arts organisations were also facing the ethical implications of planning events when Covid was likely to be spreading throughout New Zealand.
"[However], over the next few months it will be important that we support some smaller events with a lower risk profile that can go ahead," Mr McMillan said.
While this option was not available for all, having some safely-run events could be "really significant" to the mental wellbeing of arts practitioners and audiences , as well as providing badly needed income.
