The revised forecast was outlined on Monday with the release of the federal government's Mid-Year Economic and Fiscal Outlook.

READ MORE: 'Challenge' ahead as state's GST receipts face $280 million hit

Labor finance spokesman David O'Byrne said the Treasurer needed to come clean on if further cuts would be made to services as the result of the writedown.

"We've seen the state government's form in its first round of cuts [which are] disproportionately impacting health services and a lack of response to issues such as housing," Mr O'Byrne said.

"Already they are pushing through close to half a billion dollars in cuts [and] they have forecast cuts for next year on top of that half a billion dollars.

"The Treasurer Peter Gutwein, like Monty Python's Black Knight, cannot say this is a flesh wound. This is a body blow to the state budget."

Mr O'Byrne said if Labor were in government the party would set down a long-term fiscal strategy to re-balance the budget but would not provide details as to what this would entail.

"We will launch our comprehensive economic strategy in the lead-up to the next election," he said.

"It's not for me, two years out from an election, to cherry-pick what Peter Gutwein should do."

Treasurer Peter Gutwein acknowledged on Monday the hit would be "challenging' for Tasmania.

On Tuesday, Mr Gutwein again failed to answer questions about if any services would face additional budget cuts on top of the state's $450 million efficiency dividend and if Treasury would look at new revenue-generating streams.

"While the GST writedown is beyond state control, our strong budget position and disciplined budget management, with a focus on growing our own source revenues, means we are well-placed to manage the impact," Mr Gutwein said.

"Unlike Labor, which has no alternative plan to protect Tasmania's economy and jobs, we will continue delivering for Tasmania."

Mr Gutwein said he would have more to say on the position of the state budget with the release of the Revised Estimates Report in the new year.