The school has long-term partnerships with some sporting clubs, including the City of Launceston Basketball Club, who use the school's gym to train its young members.

Training has been suspended due to the coronavirus, however, with Tasmania moving to stage three restrictions, community sport has been given the green light to resume.

City of Launceston Basketball Club president Kane Brewer said the club wasn't sure how it would cover the costs of returning to train, as there was more onus on creating a COVID-safe environment.

"We are a not-for-profit organisation, so the only way we make money is through our membership fees but we found that with the extra cleaning of facilities that will be required, we weren't sure how we could start up again without putting fees up," Mr Brewer said.

However, the school has announced it will waive the payment of gym fees from the start of the school holidays until the end of the year, to help struggling local sport get back on its feet.

Principal Jane Bovill said the school community, along with the wider community, was in desperate need of connection and this was one way it could give back and contribute in the post-pandemic environment.

"Children have said the things they missed most were their friends and their teachers, so we thought that if we could help with sport, it would be our way of bringing that connection back," Ms Bovill said.

The announcement was made on the same day the state government announced further funding for grassroots sporting bodies, with $914,000 in funding for tranche two of its successful sport grants.

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Sport Minister Jane Howlett said the funding would be made available to clubs in order for them to purchase new equipment, improve the quality and safety of the sporting experience for members, or to help fund safety and sanitisation requirements such as signs and sanitation stations.

Mr Brewer said the basketball club had not seen a decline in its members, the generosity of Riverside Primary School would mean training could resume sooner and it would lead to a review of fees.

He said the club accessed the school gym four or five days a week to train, with games played at Elphin Sports Centre. Elphin has been the home of the COVID-19 testing facility but is being relocated to allow basketball games to resume.