Hospital style beds at the University of Tasmania's Launceston campus will be made available for the government if needed.
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Vice Chancellor Professor Rufus Black said the university was doing all it could to support their staff and the community.
Coronavirus: All the latest updates on COVID-19 for Tasmania
"We've told staff how important it is that we continue to operate through this period of time, but given that we like everyone else in Australia see that this is going to go on for some time we need to do that successfully," Professor Black said.
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He said the university was preparing for a reduction in interstate students.
"The biggest impact is that there will be really no students from out of state coming in the next semester or probably in the new year either," Professor Black said.
The university will be cutting down on non-salary based expenditure which makes up about 40 per cent of their budget.
This includes things such as travel, entertainment and capital programs such as the southern campus master plan.
But Professor Black said works in Launceston and Burnie would still go ahead.
"[They are] really important projects for the Tasmanian community that will keep jobs going," he said.
"We are supporting the government in every way we can and so we have also prepared our nursing facility in Launceston to provide extra beds if needed.
"There are 46 beds there and it is a very well equipped facility should extra hospital type beds be required."
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