A new taxi transport scheme for National Disability Insurance Scheme participants will be made available until the end of 2023.
The government in 2016 established the program to assist NDIS participants who had to transition to transport supports offered under their scheme plan.
This was due to end on June 30.
Infrastructure Minister Jeremy Rockliff on Tuesday said the subsidies would continue.
"We are committed to ensuring NDIS participants can access the benefits this scheme is bringing but we want to ensure that there is a smooth transition," he said.
He said those in receipt of the safety net subsidy would move to a new scheme which offered up to $1000 in taxi travel for the first year and then $350 for each subsequent year until the end of December in 2023.
Mr Rockliff said the new supplement did not replace the NDIS' responsibility to meet the transport needs of Tasmanian participants but recognised people may need additional support during the transition period.
National Disability Services state manager Will Kestin last week said the subsidies offered under the safety net helped 1400 Tasmanians with a disability at an average individual cost of $300 a year.
He said there remained issues with NDIS travel costs and said the safety net needed to be extended until these were resolved.
We are committed to ensuring NDIS participants can access the benefits this scheme is bringingInfrastructure Minister Jeremy Rockliff
"The NDIS travel supplement is underfunded and it doesn't cover people's ability to be able to remain mobile," Mr Kestin said.
The state government also operates a wider taxi-subsidy program which it says is accessed by more than 17,000 people.
This scheme is not subject to annual caps.
The final stage of the NDIS roll-out in Tasmania will begin in July.
As at December 31, there were 5528 NDIS participants in the state.