The small business sector is urging the state government to lift the one person per four square metres rule put in place because of COVID-19 to allow businesses to again operate at full capacity.
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Manager of Kameleon Hair and Beauty in Kings Meadows Fiona Plummer said the current restrictions meant she had to limit the number of staff and clients who could come to her salon.
"Staff can only do one client at a time. Usually when we do a client, if you do a colour [appointment] you can do a client in between," Ms Plummer said.
"If they have a colour, which takes two to two and a half hours, you are paying people to stand around for an hour because they can't do another client."
Ms Plummer said lifting the four square metres per person restriction would mean she would no longer have to turn down clients for appointments and she would be able to bring back all her staff.
She said she normally employed six staff but currently only three were able to work.
"We have beauty as well as nails. My nail technician can't come back to work yet because of the distancing rules," she said.
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"If you have more clients come in, it makes each day more productive.
"I've lost business - clients have gone to other salons."
Ms Plummer said she was not currently profiting from having the salon open again after it was closed for six weeks because of the pandemic.
"I'm just paying rent, for stock and for staff and I'm just covering it," she said.
Tasmanian Small Business Council chief executive Robert Mallett said the four square metre rule was crippling businesses and should be immediately repealed.
"Increasing the number of customers allowed but keeping the four square metre rule means increases in patron numbers are meaningless for most businesses given their limited physical size," Mr Mallett said.
Mr Mallett said a recent spike in COVID-19 cases in Victoria should not be used as an excuse to keep Tasmania's borders locked and to not further ease restrictions.
"Tasmanian business is bleeding jobs right now due to our locked borders and strict distancing requirements despite the fact that it's now been over five weeks since the last new diagnosis of COVID in our state," he said.
"At the moment we seem to be cowering under the doona hiding from a monster which isn't under the bed, it's safely on the other side of the moat.
"Tasmanians and Tasmanian business have done everything asked of them by the government, they should be rewarded not punished."
Mr Mallett also said travel bubbles with other safe destinations - such as South Australia, Queensland, the Northern Territory and New Zealand - needed to be urgently implemented.
But Premier Peter Gutwein said Tasmania was taking advice on the four square metre rule from Public Health officials, based on national advice, and he would have more to say about Stage 3 restrictions easing later this week.
"It is important we continue to follow public health advice, it has served us very well and helped to keep many Tasmanians safe from a devastating global pandemic," Mr Gutwein said.
"We must continue to put the health and safety of Tasmanians first and foremost and timelines will be informed by Public Health officials, to ensure we do not compromise all the hard work achieved in Tasmania when it comes to COVID-19."
Mr Gutwein said Victoria's recent challenges were very concerning and demonstrated Tasmania could not be complacent and must be measured and sensible in its response to COVID-19.
"This week I will continue to engage with public health experts on the matter of borders and our response will be one that is the most responsible pathway forward for our state," he said.
"I have committed to provide an update on our borders on Friday June 26 as well as bringing forward the Stage 3 restrictions easing to this same date."