It comes at a time where domestic travel is increasing, with Tasmania set to "become another suburb of Tamworth".

Travel agent Paula Peterson was incredibly grateful to New England MP Barnaby Joyce for advocating for the region's agents.

"We are grateful of any assistance the government can give us," she said.

"It's been beyond tough, but I'd also like to thank my clients who've just been delightful and so supportive. Many agents have not been as lucky as I have."

Under the $128 million scheme, eligible travel agents with a turnover of over $50,000 a year will be able to apply for the one-off payment.

Payments will be scaled, with a minimum payment of $1500 for a business with a turnover of $50,000 up to a maximum payment of $100,000 for a business with a turnover of $20 million.

However while applauding the move, Ms Peterson said there were so many other issues at play needing attention that a single one-off payment couldn't alleviate.

She like many others have had to work the last nine months for free to apply for refunds, process refunds and change people's bookings that can't be refunded.

"On top of that we've had to give back our earnings from the last 15 months to go with the refunds, earnings that we've paid tax on, paid staff with, paid our leases, paid for our groceries," she explained.

"And we still have another another minimum of 12 to make any kind of reasonable income.

"We are grateful for that anything that can help - but there is a far bigger picture in the future if things don't turn around with a vaccine."

Mr Joyce has welcomed the payment in recognition that many continue to work hard processing consumer refunds, whilst unable to trade due to the COVID-19 pandemic.

Earlier this year, he hosted a roundtable for local travel agents to discuss avenues for assistance.

"These are local businesses doing their best to get through this economic crisis but due to their unique circumstances, had slipped through the cracks for existing financial assistance," Mr Joyce said.

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"Clearly, this payment is no silver bullet but it's at least some relief for the half dozen or so New England travel agents who I spoke with and made their concerns known to the Minister."

"Especially local operators which would normally rely on the increased trade from events since cancelled such as the 2021 Tamworth Country Music Festival.

"Travel agents can be assured I will continue to lobby for assistance for the industry."