Australian Government to announce $240 million for a redeveloped Hobart waterfront

The money is to be used by the state government to redevelop the precinct that stretches from Macquarie Point to crown land at Regatta Point.

A statement from the Commonwealth Government highlighted housing had been recognised as a central part of the broader precinct.

"In consultation with stakeholders, crown land at Regatta Point will be developed through a public-private partnership, delivering a mix of waterfront housing, including affordable homes and housing for critical health workers and veterans," the statement read.

"A refreshed plan for the site and engagement with the community, will guide the project so it delivers on the priorities of the Hobart locals.

"This includes working with First Nations groups, Hobart City Council and the RSL"

Prime Minister Anthony Albanese as an infrastructure minister in a previous Labor government handed over $50 million to the state government for a former precinct redevelopment.

A lack of progress from that contribution has long been criticised.

On the recent funding announcement, Mr Albanese said the new plan would provide affordable housing, jobs and transport solutions.

"This sets up Macquarie Point as the future jewel in the crown for Hobart," he said.

"A place where people can live, work and come together."

A key part of Macquarie Point's redevelopment will be a $715 million stadium which has drawn the ire of those on all sides of politics and many Tasmanians, largely due to it being a condition of the state's pursuit of an AFL and AFLW team licence.

It has, however, received support from chief business, tourism and industry groups.

The state government has contributed $375 million towards the construction of the stadium and the AFL has promised $15 million.

Premier Jeremy Rockliff said the renewal of Macquarie Point would have the stadium at its core to inspire economic activity.

"It will be a unique destination to attract visitors to our state and will finally mean Tassie can host events that have previously bypassed the state," he said.

"It creates certainty for investment and thousands of new jobs which will give young people a reason to stay in Tasmania."

Federal Housing Minister Julie Collins said she was pleased that housing is a central part of the precinct plan.

"This will build on the work the Albanese Government is already doing to ensure more Tasmanians have a safe and affordable place to call home," she said.