The state's moratorium on rental evictions will be extended until December 1.
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The moratorium, which was due to expire on September 30, also includes a freeze on rent increases.
Building Minister Elise Archer said the state government's Rent Relief Fund would be extended in line with the moratorium's new expiry date.
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She said the government would allow tenants who had already accessed the fund the chance to receive more help until December 1 if their rent was still in arrears.
Eligible tenants can receive up to four weeks' rent from the fund up to a maximum of $2000.
Ms Archer said the government's advice to tenants continued to be that the pandemic was not an excuse for a rent holiday for residential tenants.
She said the government would introduce a residential landlord support fund to help landlords in financial hardship.
This fund would offer four weeks' rent up to $2000 to lardlords who can prove they have tenants with rent in arrears.
Applications to the fund will open on September 7.
Ms Archer said the government would soon release a bill that would allow landlords and tenants to formally enter into a payment plan to deal with arrears.
Real Estate Institute of Tasmania chief executive Mark Berry said the institute saw the new announcement as a pathway out of current restrictions which was fair for landlords and tenants.
Tenants' Union of Tasmania spokesman Ben Bartl said the state's tenants would be breathing a collective sigh of relief on news the rent moratorium would be extended.
He said the financial assistance offered by the government was not available in any other Australian jurisdiction.
Labor's housing spokeswoman Alison Standen said the decision provided greater certainty for landlords and tenants.
"Housing security is critical to helping Tasmanians get back into work," she said.
Greens leader Cassy O'Connor said an extension of support to renters was crucial as coronavirus income supplements for out-of-work Tasmanians were due to be removed on September 30.
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Political reporter for Australian Community Media, based in Hobart.
Political reporter for Australian Community Media, based in Hobart.
