Restrictions on theatre capacity limits may result in the closure or bankruptcy of local theatre companies if not eased soon according to those in the sector.
Currently, Tasmanian theatres are at 50 per cent capacity, with venues of 250 people or less able to seat 75 per cent without an application.
However, larger theatres, and theatre companies wanting to use them, have to apply and have their application granted to seat up to 75 per cent.