The JobKeeper and JobKeeper schemes have been extended but with a number of changes including a reduction in both rates of $300 a fortnight from late September.

READ MORE: JobSeeker, JobKeeper payments slashed

Tourism Industry Council Tasmania chief executive Luke Martin said with JobKeeper extended businesses in the sector would now be making decisions about their future employment needs.

"Many larger employers put their staff on JobKeeper right at the start because it was the right thing to do for many businesses to maintain their staff structure through the shutdown," Mr Martin said.

"A lot of those employers will now be reassessing for the new reality - that's where I expect we will see unfortunate job cuts across the sector."

Mr Martin welcomed the fact the JobKeeper extension would be applied universally, not just to specific sectors of regions.

"Given the government has expressed an intent to temper down the support over the next six months, it's far better to have that rather than the alternative of ring-fencing certain sectors and excluding others because I think that would have been particularly damaging in regional Tasmania," he said.

"In Tasmania we've got laundromats, service stations and retailers who are heavily dependent on tourism - it's not just guest accommodation and tour operators."

READ MORE: Slashing JobSeeker will force Tasmanians into poverty

While he agreed keeping the current JobKeeper rate was preferable, Mr Martin said he understood the government's choice to step down the rate.

"It makes sense that there is a need to wean off businesses from support over the next six months," he said.

But Tasmanian Greens senator Peter Whish-Wilson said no changes should be made to JobKeeper while COVID restrictions were still in place.

"Tasmania is especially vulnerable to these premature changes in JobKeeper - announcing reductions now in stimulus payments that are vital for confidence in our economy and community is madness," Senator Whish-Wilson said.

"These changes represent more penny pinching ideology from the Liberal party, based on nothing but supposed 'anecdotal evidence'.

"The justification that somehow JobKeeper needs to be cut because it is 'distorting the economy' is laughable - it's the pandemic that is distorting the economy."

Tasmanian Labor senator Anne Urquhart said extending JobKeeper was not the same as coming up with a comprehensive plan for jobs, particularly for the industries doing it the toughest.

"This pandemic is going to be with us until a vaccine is developed so winding back JobKeeper without developing a comprehensive plan for jobs and the economy seems to be an exercise in wishful thinking," Senator Urquhart said.

In regards to JobSeeker, Senator Urquhart said the Morrison government had missed an important opportunity to permanently raise the payment.

"There is no detail on what will happen to the rate of JobSeeker payments after the COVID supplement is scheduled to now finish at the end of this year," she said.

"The old base rate of JobSeeker places many Tasmanians at risk of poverty and threatens the state's economic recovery."