In its annual report, published on Thursday, TasTAFE's financial statements showed the vocational education provider rounded out the 2019-20 financial year $16.5 million in the red.

"This includes the impact of COVID-19 together with a book loss of $1.9 million recorded on the expected sale in the 20-21 financial year of the Launceston city property," the report reads.

Last year, the education provider revealed it would consolidate Northern students to the Alanvale campus and sell Launceston.

However, the sale process is yet to begin but is likely to start in the 2020-21 financial year.

Students began a staged relocation to Alanvale at the beginning of 2020, before the coronavirus pandemic forced classes online.

The underlying net debt posted for this financial year is an increase of $5.3 million in the previous year.

"Whilst TasTAFE has recorded a loss on the sale due to the carrying value of this asset, this transaction will be cash positive for TasTAFE," the report reads.

"Adjusting for the COVID-19 and the anticipated book loss on sale of the Launceston city property resulted in a deficit for 2019-20 of $10.6 million which is primarily explained by unfunded depreciation and amortisation expense of $8.2 million and increases in employee provisions of $2.3 million."

RELATED STORY: $4million upgrade slated for Alanvale

The report noted the COVID-19 pandemic had significantly impacted on TasTAFE's commercial revenue streams.

During the height of the pandemic, TasTAFE closed all its campuses and moved to online learning and small face-to-face sessions as part of Tasmania's response to the virus.

TasTAFE's inability to deliver a range of practical short courses and skill sets cut into its revenue to the tune of $4 million.

"Despite the underlying net result, TasTAFE's financial position at June 30 was sound with net equity totalling $163.8 million."

TasTAFE also weathered a hit in students, with student numbers dropping as a result of the pandemic.

"Before the COVID-19 pandemic, TasTAFE's student enrolment numbers were on track to match or exceed those of 2018-19," the report reads.

RELATED STORY: Alanvale relocation will be staged

"This is no longer the case, although apprenticeship numbers are still higher than in 2018-19."

Education Minister Jeremy Rockliff said the report showed TasTAFE was investing in students and facilities.

"Importantly, student satisfaction with TasTAFE's training also remains high, with 91 per cent of graduates indicating they would recommend TasTAFE," he said.

That result is higher than the national average.

"The Tasmanian Liberal Government recognises the importance of TasTAFE in ensuring Tasmania has the skilled workers we need to support our economy, which is why we have invested in new infrastructure projects to enhance training facilities for students," he said.