Asylum seekers will be able to relocate to Tasmania and work or study there under a new temporary visa program.
Premier Will Hodgman announced the official start of the Safe Haven Enterprise Visa (SHEV) program in Hobart on Saturday.
"Tasmania is now a designated regional zone, which means asylum seekers in Australia who have been granted a SHEV by the federal government can relocate to Tasmania," Mr Hodgman said in a statement.
So far, NSW is the only other state to sign up to the program.
Mr Hodgman said $1.2 million would be spent over four years on a "Safe Haven Hub" to support visa-holders.
An extra $1 million is being committed to either the United Nations High Commission for Refugees response, or "on-island support" for refugees, he added.
The Tasmania government will assist visa-holders with employment, interpreters and settlement services, and has offered to accept Syrian refugees.
"Tasmania stands ready to play its part and welcome an additional 500 refugees and asylum seekers to settle in our state," Mr Hodgman said.
"This is a doubling of our usual annual intake, and above our per capita share of the 12,000 refugees that the Australian government has indicated will come to Australia."
The premier said an inter-departmental committee had been established to plan for the arrivals.
He plans to meet the chair of the Refugee Resettlement Advisory Committee on Monday.
"We believe migrant populations strengthen our communities and help build a socially inclusive society," he said.
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