Playground Tasmania hopes to improve disability access, upgrade its kitchen and training areas and add a better heating system at its Invermay site using a $350,000 pledge from the Liberals.
The funding, which would be provided as part of the budgetary process, would allow the not-for-profit organisation to move ahead with stages 2 and 3 of its master plan for their old hall on Holbrook Street.
Limitations around doorway sizes have meant some families have been unable to utilise the range of playgroup options available at the site.
Playgroup Tasmania chief executive officer Jacinda Armstrong said there would be a remodelling of the layout of the hall.
"Wider doorways, accessible toilets and kitchen area, there'll be a training room where we can also provide best-practice playgroup training for other organisations delivering programs," she said.
"We are ready, it's a project that we've been wanting to have funded for a long period of time now."
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Stage 1 of the plans involved adding wheelchair access to the front of the hall and establishing a playground.
More than 50 families use the space per week, with programs running most days of the week and ranging from general playgroups to services for children with developmental delays.
Health Minister Sarah Courtney said she was pleased to be able to announce the funding, given Playgroup Tasmania's funding is usually program-based, rather than for capital works.