The initiative will cost the government an estimated $41.2 million over four years.

Mental health and wellbeing minister Jeremy Rockliff acknowledged there were holes in the child and adolescent mental health services.

"We acknowledge that there are longstanding issues and gaps within CAMHS, and that a fundamental shift in the delivery of services is required to ensure that young Tasmanians can receive the best possible mental health care," he said.

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The state government has also committed to providing 80 full time professional support staff, including school psychologists, social workers, nurses, speech and language pathologists, at schools.

In addition, all school health nurses will receive the latest youth mental health training funded by the government.

Mental Health Council of Tasmania chief executive Connie Digolis welcomed the funding announcement by the government but warned it could not operate in isolation.

"We commend PESRAC and the state government for prioritising the mental health of all Tasmanians, recognising the important role that good mental health and wellbeing plays in underpinning every facet of Tasmania's post-COVID recovery.

"CAMHS cannot operate in isolation, and the community managed mental health sector plays a critical role in ensuring young Tasmanians have access to the support they need at any level, whenever and wherever they need it."

Labor leader Rebecca White criticised premier Peter Gutwein and the state government's track record on mental health in her response to the state of the state announcement.

"[The government] promised to improve the delivery of mental health services, they promised to be more transparent and more accountable ... the Liberal government has failed on every measure," Ms White said.

Labor has committed to employing mental health workers, including social workers, youth workers or psychologists, at all 195 Tasmanian state primary and high schools. The plan is estimated to cost $40 million.

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