Premier Will Hodgman said the pilot program, announced in last year’s budget, had led to the employment of 700 young people and would continue until 2021. 

He said as well as helping the state’s youth get work more easily, the scheme intended to fill skills shortages in the building and construction, tourism, and advanced manufacturing sectors.

Mr Hodgman said 100 Tasmanian businesses had signed up to the scheme.

Launceston businessman Errol Stewart said the scheme had allowed his automotive business to employ 18 apprentices and four more for the construction of his Silos hotel development.

He said once the hotel was complete, about 12 apprentices and trainees would be recruited

Mr Stewart said the scheme encouraged businesses in general to put on young people knowing there would not be a payroll tax penalty.

"If there is no payroll tax, you have $4000 which is a reasonable sum," he said.

The extension relies on Parliament approval.