A re-elected Federal Liberal Government will invest $2.5 million to allow restoration to go ahead for Launceston's iconic Princess Theatre.

Liberal Member for Bass Bridget Archer has been working with council on progressing this project for the benefit of northern Tasmanians.

"The Princess Theatre is part of Launceston's cultural heritage and this commitment ensures we can utilise this great facility well into the future," Mrs Archer said.

"The $2.5 million will be used to help modernise the 1911-built theatre, including improved operational and safety performance, increased accessibility for performers and patrons and enhancing flexibility and usage of the centres around axillary areas and main stage for other events.

"I have been working closely with councillors and performing arts stakeholders around what is best for patrons and performers in northern Tasmania. We have a proud and vibrant arts culture in our community and this project presents more exciting opportunities."

The modernisation will create at least nine jobs in the construction space and provide flow-on economic benefits for the region.

The investment is part of the Liberal's plan for northern Tasmania and highlights how strong economic management benefits communities.