JobKeeper should continue to support selected industries that are still struggling with the impact of COVID-19, Business Northwest president Ian Jones says.
The wage subsidy scheme is set to expire in September but Mr Jones said sectors such as tourism were still far from recovery.
"We don't know when the next cruise ship will arrive and we don't know when the next international or even interstate tourists will arrive," he said.
Mr Jones said support for the tourism industry was a particular concern for the North-West and "there will be other industries in the nation that need it".
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He said extending JobKeeper for some sectors wouldn't necessarily cost more because it could be funded by winding back support for other industries that are in better shape.
"If someone's turnover is back where it should be then really the taxpayer shouldn't be paying their staff. So that money can be redirected to industry sectors that are still suffering," he said.
Mr Jones outlined his case in a letter sent to federal Treasurer Josh Frydenberg this week.
Braddon MP Gavin Pearce said the federal government was currently undertaking a review of JobKeeper that would explore "the effectiveness of the program across various sectors".
"The focus of the Federal Government now is to ensure that our transition through the recovery phase maximises the number of Australians getting back into work," he said.
"It is clear that some sectors will require support for longer and I am continuously monitoring and representing the position of all industry sectors across the North-West, West Coast and King Island as it evolves."
The state government's decision to start Stage Two of the COVID-19 recovery plan this week will provide some relief for the tourism industry, with the end of restriction overnight stays and travel within Tasmania.
But West by North West chief executive Tom Wootton said intrastate travel would not be enough to make up the loses of the industry.
"it certainly won't bring up the shortfall. The Tasmanian tourism industry's primary target market has been interstate tourism," he said.
The 2019 Tasmanian Tourism Snapshot found interstate visitors spent $2.11 billion while Tasmanian tourist who stayed somewhere overnight spent $528 million.
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