The move was immediately praised by anti-GM lobby group, the Gene Ethics Network, which says the Government has shown "real leadership".

Tasmanian Minister for Primary Industries and Water, David Llewellyn, argued the move would "make the State’s primary produce even more desirable".

"Tasmania's GMO-free status is a key factor in the Tasmanian brand and is therefore vital to Tasmania's primary producers realising their full potential in international and interstate markets," he said.

"The markets are demanding, and are prepared to pay for, food that is clean, green, high quality and safe.

"Tasmania is already well-positioned to meet that demand and our decision to extend the GMO ban makes the Tasmanian brand even stronger.

"The decision by some other Australian States to relax their GM bans has actually increased the value of Tasmania's GMO-free status and that creates opportunities for even better access to prime markets across the globe."

The policy resulted from an exhaustive government inquiry that has all-party support for a GM-free stance.

Gene Ethics director Bob Phelps said the move was a win for farmers as there were now premiums for GM-free canola of between $75-90 a tonne.

"The Japanese, Indian and Middle Eastern markets all want GM-free products and are ready to pay the premium," he said.

"Genetically manipulated canola is a dead loss in NSW and Victoria, with only a handful of selected growers risking Roundup tolerant GM canola that puts them at the mercy of rapacious companies.

"Growers are charged an accreditation fee of $500 ($1,000 next year), a premium for seed, more expensive Roundup, and an end-point-royalty of $10.20/tonne ($20.40 next year).

"The new WA government should match Tasmania's GM-free stance and also reap the benefits."