Tasmania's borders will remain closed until at least 1 December, Premier Peter Gutwein has announced.
The island state has just one active coronavirus case, a man in hospital who returned from Melbourne after receiving medical treatment earlier in August.
The decision allows sufficient time for the coronavirus situation in Victoria to be brought under control, Mr Gutwein told state parliament on Tuesday.
"At the moment the risk posed to Tasmania by the situation in Victoria is considerable," he said.
"We must avoid a situation like Victoria or NSW, as we would have to impose serious restrictions once again."
Mr Gutwein said the clear date would provide certainty to the community and businesses.
Grants totalling $7.5 million will be handed out to Tasmanians between now and December to encourage them to holiday at home, he announced.
"We also recognise there is a need to do more to help our hospitality and tourism industry," Mr Gutwein said.
Tasmania closed its borders in late March and has recorded a total of 228 COVID-19 cases and 13 deaths.
People in Australia must stay at least 1.5 metres away from others. Check your state’s restrictions on gathering limits.
If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.