Adrian Barrett, who runs the event management company Eight Oh Eight, said live music venues were not only having to grapple with the end of JobKeeper, but also expensive rent and ongoing overhead costs.

He's started an online petition calling for "an end to crippling restrictions on music venues". As at 2.20pm on Wednesday, 560 people had signed it.

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A typical indoor live music show without fixed seating in Tasmania doesn't fall under the state government's events framework; rather, existing public gathering requirements apply.

That means gigs are likely to be restricted to a maximum of 250 people indoors, with no more than 100 people standing and two square metres of space per person. The number of people includes venue staff, volunteers and performers.

With fixed seating, meanwhile, a maximum of 500 people are allowed under level one of the events framework.

Mr Barrett said he didn't think it would be long before some venues had to close.

"I think it's not far off with a few," he said. "I've had a few of them tell me that they're actively looking for loans to do payroll."

"I know people that used to work at the venues as technicians who don't have jobs anymore who have cried at my table because their mental health is unstable."

With winter approaching, the chief concern of event organisers is how restrictions could force them to hold events outdoors, when inclement weather is more frequent and people are less likely to buy tickets.

Tasmanian Hospitality Association chief executive Steve Old said he was pleased the state government had moved to allow greater capacity in theatres and cinemas but he wanted to see the same freedoms given to hospitality venues.

"Many venues rely heavily on live music and other events to remain viable and the longer these restrictions are in place, the more uncertain the future becomes for these operators," he said.

A Health Department spokesperson said seated events posed a lower risk than events where people mixed and moved freely.

"The director of Public Health issues directions based on a range of factors," they said. "These include the nature of the activities, the current level of risk, advice from AHPPC, Tasmanian health system capacity, Public Health's capacity to contact-trace, the vulnerability of our ageing population, and more. The directions are reviewed regularly, and are amended when it is appropriate to do so."

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