The government is not ruling out forced council amalgamations after indicating that the number of councils across the state is "unsustainable".
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Local government legislation allows the minister to act alone in making decisions on mergers without the approval of parliament.
When asked by Labor whether the state government would use this power, Local Government Minister Nic Street failed to deny forced amalgamations.
Mr Street said the local government review was underway, and in the first six months of that review it became clear that "the status quo is unsustainable for a number of councils going forward in this state".
He said a report with recommendations will be released at the end of March, and there will be options for the local government sector to shape what course would be taken moving forward.
"I have been absolutely clear the whole way along that I want to be open and transparent about how we go through this process," Mr Street said.
"The government's role will come when the report is delivered to us ... I am not going to preempt what recommendations might be in that report but I am more than happy to put on the record that we want to be transparent and open about this process. What role parliament has will be a decision that we need to make going forward as well," he said.
"At the councils that I have visited [28 out of 29], I have made it clear that all options are still on the table as far as the state government is concerned because we have not received the second report."
Labor local government spokesman Luke Edmunds said the minister was looking to forcibly amalgamate Tasmania's local councils by stealth.
He said Labor did not support forced amalgamations and the loss of jobs and local services across Tasmania.
"Minister Street has arrogantly refused to say if he'll take on board the views of councils and their communities and won't rule out using his powers via Section 214 E of the Act to force the issue," Mr Edmunds.
"If he wants to close down councils and trash local jobs in the process he should commit to bringing his amalgamations agenda before both houses of parliament," he said.
"The future of local government is worthy of more than a few poorly advertised town hall meetings that excluded every city in Tasmania."
