The Targa Tasmania car rally has been downgraded to a non-competitive event after the death of a driver in a crash, a year after three competitors were killed.
A Brisbane man, described as a regular competitor, died on Wednesday afternoon when his car travelled 20 metres down a steep embankment on a remote section of road at Mount Roland in the state's northwest.
The 59-year-old's wife, who was his passenger, walked away from the crash and was taken to hospital for observation.
Three people were killed in two crashes at last year's rally, prompting widespread changes aimed at improving safety.
Targa Australia chief executive Mark Perry said the decision to put a line through the competitive part of the event was a difficult one, but necessary so the crash could be fully investigated.
"While cars will continue to drive on closed roads, drivers will now be limited to the signposted speed limits for the remainder of the event," he said in a statement.
"Those who have entered into the competitive stages will be given the opportunity to join the tour."
Mr Perry described the man's death, during the 30th running of the rally, as "shattering".
"We lose a close member of the Targa family, a long-term, regular competitor of ours," he told reporters on Wednesday night.
"It's hard to put words to it for us right now, after last year and all the work we've done.
"After the 90-minute briefing we gave everyone the other day ... we swing towards devastation.
"We're totally devastated given we worked so hard to improve the event from last year."
Mr Perry said the pair were in the final stage of the event's second day and were one of the last few cars on course.
"It's a long-term stage for us, not new, it's not unfamiliar to any of the competitors, particularly this crew, they've done many events with us before," he said.
Tasmania Police crash investigators will return to the scene on Thursday to obtain more information.
Emergency services worked into Wednesday night to remove the man's body from the wreckage.
"I'm told the road was wet but it wasn't raining at the time," Tasmania Police Inspector Darren Hopkins said.
"(We have) no idea at this stage (about the cause). It could even be a medical condition."
Shane Navin, Leigh Mundy and Dennis Neagle lost their lives in crashes during last year's Targa Tasmania, prompting an investigatory tribunal to be established.
It made 23 recommendations for future tarmac rallies, including speed limits, altering stages year-by-year to avoid complacency and a tiered licensing system.
Seventeen of those have been adopted by rally organisers, with six the responsibility of Motorsport Australia to implement.
© AAP 2022