The Tasmanian government will put aside an extra $110,000 over five years to increase the state governor's annual package to close to $700,000.
The 2015/16 budget released on Thursday lists Governor Kate Warner's current "salary" as $570,000.
But the Tasmanian government has since clarified the figure as including expenses such as travel and accommodation on top of Prof Warner's $427,000 cash component.
On July 1, the annual kitty for the governor will jump by $41,000 and stretch to a total of $680,000 per annum by the 2018/19 financial year.
A former university law professor, Prof Warner, 66, began her five-year appointment as governor in December.
Salary for the five-year appointment is determined in accordance with the Governor of Tasmania Act 1982 and pegged at 90 per cent of the pay for the state's chief justice.
The chief justice's salary will be subject to review by Tasmania's auditor general at the end of May.
Governors in NSW and Queensland are paid about $450,000 and $480,000 respectively per year.
Prime Minister Tony Abbott earns around $500,000 which is topped up by accommodation, food, travel and other allowances.
When appointed to the role of Australian governor-general in 2014, Peter Cosgrove's Commonwealth-funded military pension was taken into account and his salary was set at $425,000.
GOVERNMENT'S KITTY FOR TASMANIA'S GOVERNOR
* 2014/15: $570,000
* 2015/16: $611,000
* 2016/17: $640,000
* 2017/18: $660,000
* 2018/19: $680,000
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