The state government has announced their new target as part of their ambitious plan to lift literacy rates across the education sector.
The government's plan will see all students by year 7 meet an expected reading standard that is above the national minimum by 2030.
The target will be applied to all students currently undertaking NAPLAN and the standard determined against the progress achievement test.
The plan will have teachers receive extra training while phonics instruction will be implemented at all schools from prep to year 2.
Education Minister Jeremy Rockliff said the ambitious goal was much needed.
"If we are to achieve our aspirational goal for all Tasmanians to be functionally literate, we need to recognise that this is a whole of community issue," he said.
"We must all work together across government, industry and community."
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Labor's education spokesman, Josh Willie said the new plan had to be given adequate resources by the state government to be a success.
"There is no doubt that action to improve Tasmania's literacy rates is well and truly overdue," Mr Willie said.
"Today's announcements are welcome, they need to be backed by additional resources and teachers must be adequately supported to deliver the new program in classrooms."
Additional to the implementations at schools, the government announced the creation of an expert advisory panel to oversee the development of a community-wide framework to achieve a Literate Tasmania. The panel will be co-chaired by Jenny Gale and Professor Natalie Brown.
The announcement of the literacy target continues the government's plan to lift education standards across the state which has involved the implementation of several other measures in 2021.
This year, the government has provided funding to employ education support specialists start to assist prep students and provided targeted one-on-one support in the classroom.
Riverside Primary School principal Jane Bovill said the new initiative would provide tangible benefits to students going forward.
"It's a fabulous initiative because it is providing extra resources to the years that the children are ready for learning and the change in children's learning happens really quickly at this age," she said.
Education support specialist Virginia Tempest from Norwood Primary School said that the new position would better support students at school.
"With our expertise, it's more targeted support and we're hoping the learning outcomes will be better."
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