Flinders Council will undertake a $70,000 socio and economic review of the Flinders, Cape Barren and Furneaux Group islands.
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The federal Liberal government has provided $52,500 towards the study, which follows the recent $11 million telecommunications upgrade announcement on the island.
Flinders Council Mayor Carol Cox said the study “will provide a basis to understand the economic drivers, advantages and disadvantages of residing and doing business in the Furneaux Group”.
“The findings will be particularly helpful in guiding future decisions to underpin the council’s strategic direction of growing the island population,” Mrs Cox said.
The government funding is part of the Building Better Regions Fund, with the announcement made by Tasmania Liberal Senators David Bushby and Jonathon Duniam on Thursday.