Decision on distribution of Hillcrest jumping castle tragedy public fund to start 'shortly'

It is understood $583,905 has been donated to the public fund which is being held in a MyState Bank account.

Six students at Hillcrest Primary School in Devonport, Tasmania, were killed and three badly hurt when a jumping castle and several inflatable Zorb balls became airborne during final-day celebrations in December.

"The Hillcrest community public fund distribution committee will decide how the funds are distributed to support the families, the school and the broader community," a Tasmanian government spokesman said.

"They will shortly consider how the funds will be distributed.

"The community will be kept informed of the progress."

The money from the fund is in addition to the $1.4 million that was raised through GoFundMe for the families involved.

Organiser of the Support for Families - Hillcrest Primary School fundraiser Zoe Smith announced on Tuesday the process of distributing the money to the nine families was underway, with some of the money already received by the families.

The Hillcrest community public fund was announced by Devonport Mayor Annette Rockliff and Ms Smith on Saturday, December 18, two days after the tragedy.

Originally Ms Smith said the money from the GoFundMe fundraiser would be put into the public fund account, but on Tuesday confirmed it was not possible due to "complex legal issues".

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At the time it was announced the distribution committee for the public fund would consist of Ms Smith, Cr Rockliff, Hillcrest Primary School principal Jerome Pape, MyState people community and public affairs general manager Jannette Whittle, state recovery advisor Craig Limkin and a Devonport City Council secretariat.

The money donated to the fund is in addition to $500,000 of funding provided by the Tasmanian government for immediate needs identified by the regional social recovery committee.

The money raised from the Healing for Hillcrest AFL game between Hawthorn and Richmond in Devonport on March 5 will also be donated to the public fund.

The AFL has raised more than $143,000 from items in its online auction as part of the game.

It is understood the public fund account, which has been set up by the bank on behalf of the state government and the council, remains open.