The state government has announced it will remove the current offence of begging.
Police Minister Michael Ferguson said a new bill will be tabled in the spring session of Parliament.
"Following the introduction of the Police Offences Amendment (Begging) Bill 2018 by Cassy O'Connor last year, at my instruction the Department of Police, Fire and Emergency Management has reviewed the existing act and briefed the government," Mr Ferguson said.
Mr Ferguson said Tasmania Police had advised it would still need to ensure they had to power to move along people if they were intimidating, creating a nuisance or otherwise harassing others.
"The next step in the process is to consult closely with key non-government stakeholders and the Police Association of Tasmania on the wording of the bill, which will remove the offence of begging and ensure that Tasmania Police has the required power in certain situations," he said.
Premier Will Hodgman said the government no longer believes it was appropriate for begging to be a crime under the act.
Greens leader Cassy O'Connor, who introduced the bill to Parliament in October last year, welcomed Mr Ferguson's announcement.
"This long overdue change to the law will ensure no person who feels reduced to asking strangers for survival money faces an unpayable fine or jail," Ms O'Connor said.
"This will mean a fairer Tasmania for people living in poverty, but there's a lot more work for all of us to do."