The state government announced on Tuesday, the existing Business Support Package would be raised from $20 million to $50 million, with grants up to $50,000 available across two rounds of funding.

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Premier Peter Gutwein said the state and federal governments had worked closely with the business community to develop the funding scheme before its announcement.

"The $50 million business support package will provide total grants of up to $50,000 based on annual turnover, with two funding rounds, the first in October and the second in November," he said.

"Businesses that have already been deemed eligible for support through the initial $20 million package will automatically receive the next payment in line with the new maximum grant amounts."

The stated government confirmed that with individual grants of up to $50,000 available across both rounds of funding, eligible businesses could receive a maximum of $100,000 in support funds.

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In addition to the $50 million support package, the state government confirmed it would provide a further $20 million in financial relief to assist eligible businesses in reducing their financial overhead and operating costs.

Mr Gutwein said the package would see fees waived for payroll tax, vehicle registration and passenger transport accreditation fees, as well as license fees payable to Parks and Wildlife.

"Our additional support also includes payroll tax relief for tourism and hospitality industry businesses where there has been a 30 per cent reduction in turnover in the September 2021 quarter," he said.

"Waiving vehicle registration and passenger transport accreditation fees for vehicles including taxis, luxury hire cars, tour operator buses and rental car operators for renewal notices received between July 1 until December 31, 2021.

"And waiving the license fees payable to Parks & Wildlife which removed a significant burden for tourism businesses operating within Tasmania's Parks."

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Federal Treasurer Josh Frydenberg said the new support package built on the $2.9 billion in direct economic support the federal government had already provided to Tasmanian businesses and households.

"Tourism and hospitality businesses have done it particularly tough as Tasmania feels the impact of lockdowns in neighbouring states," he said.

"Already, the Commonwealth in partnership with the state government, committed $20 million to small and medium-sized businesses."

The state government advised the new package was designed to support businesses until travel restrictions ease across the country and vaccination rates of 70 to 80 per cent were met in line with the national plan.

Applications for eligible businesses are open.

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