The school was celebrating the final day of school which ended in devastating circumstances.
Morrison says the funding will help boost services for local psychological and trauma counselling in the Devonport community.
"There's $100,000 to support return of school in 2022 - including training and counselling for teachers and staff and $50,000 in community, mental health wellbeing grants to support the community," Morrison said.
"Tasmania will get through this and we will stand with those families, and with that school community, as they work through this very challenging time."
Emergency services would receive $250,000 worth of support, with the remaining $550,000 going toward the broader community.
Devonport City Council announced a partnership with MyState Bank and the Tasmanian Government, launching the Hillcrest Community Public Fund.
A GoFundMe page has raised over $1 million for the families affected by the devastating incident, with one anonymous donor tipping in $45,000.
The page creator said all donations will go toward the Council fund.
DONATE TO THE FAMILIES HERE
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