Premier Peter Gutwein will today announce the $20,000 first home builders grant will be extended to all owner-occupiers who apply to the scheme by the end of 2020.

The announcement will form part of the state government's $3.1 billion revised construction plan.

Mr Gutwein said the plan to extend the scheme is expected to deliver 1000 new homes in Tasmania and support $400 million in construction activity over two years.

"This will provide new home builders, whether its your first home or not, with $20,000 towards the cost of a new build or the purchase of a new house and land package," he said.

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Mr Gutwein said other parts of the plan would deliver houses, community infrastructure, roads, irrigation and other essential infrastructure.

Civil Contractors Tasmania chief executive Rachael Matheson said it was important the money flowed to the building and construction sector immediately.

"We are hopeful there will be small, medium and larger projects right around the state to support the whole industry," she said.

Master Builders Tasmania executive director Matthew Pollock said immediate support would save hundreds of businesses and thousands of jobs.

Labor's infrastructure spokesman Shane Broad said the government had underspent at lest 20 per cent of the state's infrastructure budget over six years.

"On top of this, the March Quarterly Report shows the Liberals had spent just $300 million on infrastructure in the first nine months of this financial year - meaning they will have to spend an improbable $400 million in the last three months to reach their target," he said.

Greens leader Cassy O'Connor said she hoped the stimulus would both secure construction jobs and tackle the housing crisis by providing 2000 new affordable homes.

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