The Launceston City Council has received a development application from the Norwood Education Trust for the school in Waterworth Lane, off Amy St.

The school is proposing an extension to the existing school and building a multi-purpose hall and a new entrance to the main building.

Plans show the hall would include a music studio, function room, food preparation area, stage and a 14x18m multi- purpose room with a 5m high ceiling.

The existing 17 parking spaces would be doubled to 34 spaces and car access is planned from Waterworth Lane.

Plans show the existing school buildings cover 694sqm and the $500,000 extension would add another 518sqm of space.

The hall would be built mainly of concrete, with concrete external walls, floor and concrete and timber frame, and would be painted with neutral tones.

It would have a red Colorbond roof.

Oakwood School spokesman Tim Cox said the Newstead campus (one of three across the State) had 81 students, from Years 3 to 12.

Mr Cox said under the Federal Government's schools upgrade program, the school could expect up to $850,000 and that money, if approved, would be used for the Newstead work.

The Federal Government has not assessed the bids.

"The Oakwood School has a total primary enrolment of 86 students in 2009 at its three campuses (and) the upgrading of the campus at Newstead to include a multi-purpose room, which is one of the Government's preferred options, is seen as an appropriate response to the Government's request for action," Mr Cox said.

He said the school was an accredited and government- funded independent school.

He said the curriculum was secular, based on Education Department guidelines and requirements.