A magistrate has decided not to record a conviction against a Tasmanian forestry worker who punched a man in the street after recognising him as a protester.

Jamie McMahon, 28, told the Magistrates Court in Hobart he punched Ali Alishah in the face in a New Norfolk street in March last year after he recognised him as one of the Butlers Gorge forest protesters.

McMahon, a third-generation forestry worker, said frustration got the better of him because he had lost wages because of the actions of protesters.

"I jumped out of the vehicle to get the last $100 out of the bank, and as I looked across at him sitting on the bench ... I knew there wasn't going to be $750 in the bank next week, so I got a tad upset," he said.

McMahon said he had been pushed to the limit.

"I've got two kids at home to feed and a partner, and when I've got to go home and say to them, 'Look, we're $800 down this week, I don't know how we're going to make the car repayment or any loan repayment this week' ... it gets beyond a joke."

Protester Ali Alishah was punched by logger Jamie McMahon.

Two years ago Alishah was given a three-month jail sentence for continued forest protests.

He had earlier told the court he could not perform community service because he needed to be free to protest any time or place.

Huon Valley Environment Centre's Jenny Weber said there is never any excuse for violence towards forest protesters.

"There's never any excuse for violence," she said.

"The financial hardship of a forestry worker is brought about by the intense problems within the industry, not the environmentalists."

Magistrate Simon Cooper told McMahon that he understood his frustration but also cautioned him.

"It's still not right to punch a person in the street, whatever your motivation or frustration," he said.

He recorded no conviction on the condition McMahon exhibited good behaviour for nine months.

Under new proposed laws people who disrupt workplaces face $10,000 spot fines, with three-month mandatory jail sentences for repeat offenders.

The legislation has passed the Lower House. It is still being considered by the independent-dominated Upper House.