Emergency services were called to the incident about 7pm.
An east-bound Audi had run into the rear of a stationary Toyota hatch, Tasmania Police confirmed in a statement.
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There were three small children in the Toyota, two of whom had to be pulled from the vehicle before emergency services arrived. The driver was cut free by SES personnel.
All vehicle occupants were taken to Launceston General Hospital for treatment, however none of the injuries were considered serious.
The Bass Highway was closed for about two hours.