The Tasmanian Government will increase the council distribution from the Heavy Vehicle Motor Tax to $5 million.
The initiative will provide for a one-off additional contribution to be distributed to local councils to invest in road upgrades across Tasmania, and an ongoing commitment to reviewing and finding a sustainable long-term solution.
Minister for Local Government, Kerry Vincent, said the Tasmanian Government has listened to the local government sector, recognising the need for fairer distribution of the Heavy Vehicle Motor Tax revenue to help with the costs of road maintenance and upgrades.
"This is a significant increase from the current share of revenue which goes to local councils, which is currently $1.5 million," Minister Vincent said.
"It's a move which has been welcomed by the Local Government Association of Tasmania who are looking forward to working with the Tasmanian Government."
Minister Vincent said the benefits of this increase will be felt across the State to various Tasmanian councils.
"The increase in funding will help ensure roads across Tasmania are improved, properly maintained and safe for all road users," Minister Vincent said.
"This Liberal Government is delivering on our commitment to Tasmanians to strengthen the local government sector and to make our roads safer."