The Premier's Economic and Social Recovery Advisory Council last year recommended political parties collaborated on the issue of reform over an 18-month time frame.

It recommended an expert panel be appointed to examine the issue.

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The government wanted all recommendations of that panel to be accepted and agreed upon by all parties, whereas Labor and the Greens did not.

Local Government Minister Roger Jaensch on Thursday said the government would now pursue the matter alone in collaboration with councils.

He said the government had no pre-determined outcome in mind for reforms, adding the matter did not just concern amalgamations.

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"This isn't all about amalgamations - amalgamations aren't an outcome in themselves," Mr Jaensch said.

"We want to make local government better and strong and better able to deliver services.

"We want to work with local government to see what its job is going to be over the decades to come and how it needs to be set up to do that the best way possible,

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"We're not up for a fight with local government, we're not going to try and ram something through.

"This is not about amalgamation at all costs."

Mr Jaensch said councils had expressed challenges in recruiting and retaining qualified staff in important roles.

He said some councils struggled to sustainably maintain their finances.

"We do have some issues with duplication of services," Mr Jaensch said.

He said it would be harder to achieve reforms without cross-party support

Mr Jaensch said there were no plans to change the timeline for council elections, due to be held in October next year.

Labor's Anita Dow said committing to the panel's recommendations before they were made was like signing a blank cheque on local government reform.

She criticised Mr Jaensch notifying parties on the abandonment of cross-party collaboration on reforms one hour before the announcement was made public.

"The minister has given up on the process and walked away," Ms Dow said.

She questioned whether there was a need for local government reform.

Ms Dow said the party did not support forced amalgamations.

Greens local government spokeswoman accused Mr Jaensch of being deceptive and duplicitous.

"The Greens were, and continue to be, open to engaging in good faith discussions about strengthening the resourcing, public participation and resilience of local government," she said.

"We've signed up to represent the diversity of views on local government reform, and seek to find solutions that are in the best interests of all Tasmanians - not to rubber stamp the Liberals' predetermined agenda."

Local Government Association of Tasmania president Christina Holmdahl said the association welcomed genuine discussion and collaboration around opportunities for councils.

"As the level of government closest to communities, local government supports a reform process that delivers change in the best interests of Tasmanian communities," she said.

"We know from other states that successful reform must be community-led.

Tasmanian Chamber of Commerce and Industry chief executive Michael Bailey said local government should not be allowed to decide its own fate.

"Let's look at the best councils in Tasmania, let's benchmark those, and let's work with those that are financially strapped - that are really struggling," he said.

"They are never going to vote themselves out of existence."

Property Council of Australia state executive director Rebecca Ellston said there had not been real structural reform in the local government sector since 1993.

"What we must ensure is that this isn't used as a way to kick the can down the road even further," she said.

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