Senator Lambie said she was shocked to learn that about $17 million of Tasmania's public housing funding was paid back to the Commonwealth each year.

She said there was not enough affordable housing in Tasmania, and waiving the debt would be a good start to fixing the "public housing crisis".

Shelter Tasmania executive officer Pattie Chugg said the organisation had lobbied to have the debt waived for years and welcomed Senator Lambie highlighting the issue.

"This really hamstrings public housing from being able to deliver housing, and also deal with a large backlog of maintenance issues," Mrs Chugg said.

"The debt in Tasmania is the highest proportion of debt to housing anywhere in Australia."

Mrs Chugg said the Commonwealth had written off a housing debt owed by the South Australian government under similar circumstances.

She said the Tasmanian Liberals had committed pre-election to work with the federal government on a longer repayment term, which would free up $8 million in capital funding annually for new housing and crisis accommodation.

"We would like to see the debt waived by the Commonwealth - that would be the best way forward for Tasmania," Mrs Chugg said.

Tasmanian Council of Social Services chief executive Tony Reidy said he had also raised the issue with state and federal governments for many years.

A spokesman for Human Services Minister Jacqui Petrusma said the state government had raised the issue with the Commonwealth and would continue to do so.

The federal Department of Social Services did not respond to a request for comment.