The government announced it would open the fund up to all Australian councils and bring forward $1.3 billion in Financial Assistance Grants for 2020-21.

Local Government Association of Tasmania president Christina Holmdahl said the early payment of the grants would help councils which had short-term cash flow issues related to deferred rates payments.

The body has estimated Tasmanian councils could receive about $16 million from the roads and infrastructure program.

"This additional funding through the Local Roads and Community Infrastructure Program will support Tasmanian councils to continue to provide the infrastructure their communities and local businesses need, as well as providing local employment opportunities," Mr Holmdahl said.

In the North, Dorset Council will receive $751,168, Flinders Island will get $298,905, and George Town will receive $333,105.

Launceston will get $1.2 milion and $519,602 will go to the West Tamar Council.

Bass Liberal MHR Bridget Archer said the funding could be used to improve bridges and streeting lighting or for new and upgraded pathways or park facilities.

The government had contacted councils last month to investigate if they had infrastructure projects they could swiftly get off the ground.

Lyons Labor MHR Brian Mitchell at the time questioned why opposition parliamentarians weren't notified about potential funding opportunities in their electorates.

"The government's behaviour to date with this $1.8 billion has been sneaky and tricky - telling journalists there is no fund one minute and then announcing there is one," he said.

"This government has a track record of rorting federal funding, which has led to Tasmanian communities missing out on their fair share.

"For Tasmanians to have faith in this rollout, the process must be transparent and accountable."

Local Government Minister Mark Shelton said the money would be spent wisely as the sector was the closest level of government to the community.