The Event Ready Grant Program - where Tasmanian event organisers can apply for funding of up to $5000 to support COVID-19 associated costs - has been extended.

An additional $300,000 has been committed for round two of the program, which will accept applications until June 30 for events up until November 30.

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Events Minister Sarah Courtney said it had been a challenging time for event organisers, but encouraged events to look towards the future.

"We do have these $5000 grants available and we will continue to work with [events] so that they can be viable," she said.

"We'll continue to work with events, but ultimately an event is a decision for [organisers]."

The Australian Musical Theatre Festival was once of the recipients of this year's grants, after also receiving the grant in 2021.

Chairwoman Liz Bennett said the grant money had gone towards a comprehensive COVID plan, locally produced sanitiser, and training COVID marshals.

"We're really excited that the government has provided another round of grants," she said.

"Our main concerns at the moment are to try and plan for something that's business as normal, but also have a number of contingencies in place."

Ms Bennett said timing was important in regards to the festival going ahead.

"What we're really hoping for is events in March, then into April and May, will be able to work with whatever the new normal is," she said.

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However, funding has not been enough to alleviate all concerns. Several upcoming events have made the decision to cancel.

A festival called PANAMA was one of the casualties, with the event originally scheduled for March.

Event organisers said they did not feel they could deliver the event the way it should be with all the different factors at play.

The festival had artists lined up, but organisers were aware the pandemic would make events like PANAMA difficult to hold.

"We would like to run again in 2023, but our plans will be dictated by the state of the pandemic," the organisers said.

"We would love to come back with an extensive program, but at this point we just need to see what's possible."

Henley-on-Mersey, held annually on Australia Day, was another victim of the pandemic after organisers announced it would also be cancelled this year.

Committee chairman David Crampton said the aim was to provide a function that was safe and enjoyable, but concerns grew towards the end of last week that the aim would not be achieved.

"In all that atmosphere of apprehension, we decided that the safe course was to cancel this year and hope that people understood," he said.

Mr Crampton said he was mindful of the obligation to preserve a long-running event like Henley-on-Mersey, but the safety of people was the priority.

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Mona Foma's program has also suffered some cancellations and postponements.

One of the festival's major works from pakana kanaplila and Tasdance - tuylupa - will not proceed.

The performance work was due to premiere at the Earl Arts Centre, Launceston, on January 21 before travelling to Hobart.

"Whilst this is a very disappointing decision to have to make, our number one priority is the health and safety of our artists, their community, as well as our team and audiences," the companies said.

"This work is a community story, and the decision to present tuylupa later ensures the safety of our Elders. We will keep the fire burning."

Mona Foma organisers said they had spent years working with the companies to bring the performance to life and were disappointed by the delay.

"Mona Foma remains committed to presenting the work at a later date," they said.

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