An additional $20 million will be spent on grants and programs to help small businesses survive COVID-19.
The state government funding includes $15 million for the Small Business Sustainability and Recovery Grant program.
Eligible applicants include small businesses operating in sectors that are heavily reliant on the visitor economy and continue to be impacted by border closures and businesses hit by public health restrictions.
Minister for Small Business Sarah Courtney said it would be a "competitive, merit based program" with grants of $5000 allocated "based on the decisions made by an independent panel".
"The purpose of the Small Business Sustainability and Recovery Grant program is to assist small businesses across a number of sectors to sustain themselves, recover, re-open, build capacity and innovate whilst continuing to be impacted by the COVID-19 pandemic," she said.
The $15 million grants program will be complemented by another $2 million for a second round of the Small Business Community Grants programs.
There will also be $3 million to boost existing initiatives, including the Tourism Industry Market Support Program, the provision of free business advice from Enterprises Centres, increased access to the Digital Ready for Business Program and a new mental health support program.
The new $20 million package follows disquiet in the business community about elements of the government's existing grants program and pressure from the Tasmanian Small Business Council for more government support.
Ms Courtney said she had spent the past few weeks meeting small business operators, including thorough a series of regional round tables.
She said that feedback along with recommendations from the Premier's Economic and Social Recovery Advisory Council's first report informed the new $20 million package.
"The Tasmanian Government has already delivered the largest economic and social rescue package in the country, proportionate to Gross State Product, including more than $60 million towards our small business support grant programs, which has provided over 18,200 grants to Tasmanian small businesses across the state," she said.
"The COVID-19 Small Business Sustainability and Recovery Assistance Package now takes our small business support and stimulus package to more than $80 million, the largest in Tasmanian history."
For further information visit www.business.tas.gov.au