But Labor has reiterated concerns TAFE is suffering from a shortage of investment in staff and should be providing free courses in key areas.

TasTAFE released its 2020-23 corporate plan on Thursday in conjunction with National TAFE Day and the opening of a $1.4 million nursing centre at its Clarence Campus.

The strategy outlines four main goals: capitalising on positive teaching approaches ushered in by COVID-19, a commitment to training that is responsive to industry, a dedication to people and culture, and remaining "financially stable meeting the expectations of government".

Mr Rockliff said TasTAFE was "in its strongest financial position ever looking to generate a cash surplus for the first time" in February before COVID-19 started to bite.

"The government will work closely with TasTAFE to help them recover from this COVID-19 related downturn," he said.

"TasTAFE will continue to play a significant role in training, up-skilling and re-skilling Tasmanians who have been impacted by COVID-19 and they are expected to be a beneficiary of the $21 million JobTrainer fund, which has not been factored into revenue forecasts."

Shadow Minister for TAFE, University and Skills Michelle O'Byrne said the government needed to invest more in teaching staff and "remove barriers to participation" for students.

"And one of the barriers to participation in TAFE is in fact cost," she said.

"It can be anything from $2000 to $20,000 for a TAFE qualification and that's why Labor is saying that in areas identified as a workforce skill shortage we should be removing that cost barrier and provided free TAFE.

Ms O'Byrne said TAFE was meant to provide accessible training for the whole community but "we can't do that because the costs are too high and the government isn't providing the staffing and resourcing that is needed".

Mr Rockliff said the government was making a "record investment in infrastructure", including $4 million of upgrades for Alanvale Campus in Launceston and $5 million for an Agriculture Training Centre of Excellence in Burnie.

"Investing in training is so critically important and will continue to be critically important as a result of COVID-19 and the recovery process...," he said.

Braddon MHA Anita Dow said the Premier's own Economic and Social Advisory Recovery Council recommended free TAFE courses in key jobs areas, an initiative Labor has adopted in its COVID-19 Recovery Package.

"The adoption of Labor's Free TAFE policy would provide immediate opportunities for Tasmanians to get the skills they need to get a job and play a vital role in the state's COVID-19 recovery," she said.

"With nearly 20,000 Tasmanians out of work because of the pandemic, it is more important than ever to remove all barriers to train or retrain people for the jobs of the future. And with the youth unemployment rate at a staggering 13.6 per cent, we need to provide our young people with a pathway to getting a job."