Tasmania's Parliament has passed the State Government's signature bill to repeal the forestry peace deal.

The bill passed a vote in the Lower House, after being passed with amendments by the independent-dominated Upper House last week.

After four years of negotiations and countless hours of debate in Parliament to form the peace deal under the former Labor-Green government, it is now a thing of the past.

The deal added an extra half a million hectares of native forest to the state's existing reserves of 1 million hectares.

The repeal bill will reclassify 400,000 hectares of native forest for potential future logging.

Repeal bill snapshot The forest peace deal confirmed protection of 1.5 million hectares of native forest

The forest peace deal confirmed protection of 1.5 million hectares of native forest The repeal bill removes 400,000ha slated for protection

The repeal bill removes 400,000ha slated for protection Places six-year moratorium on logging in that area

Places six-year moratorium on logging in that area Gives limited exemption for speciality timber harvesting

Premier Will Hodgman said the repeal marks a milestone for the state's forestry industry.

"For more than 30 years, environmentalists, with the help of Labor and the Greens, have progressively locked up hectare after hectare of productive forests, destroying businesses and jobs, regional communities and livelihoods," he said.

"[The plan to repeal the forestry deal] was resoundingly endorsed by the Tasmanian people and today that plan has been delivered."

Environmentalists have lashed out at the move, branding it "anti-conservationist".

Jenny Weber from the Bob Brown Foundation said the protection of the state's rainforests was under threat.

"Tasmania's Government has issued a licence for native forest annihilation in an era when native forest logging should cease, for climate mitigation and ecosystem benefits," she said.

Environment Tasmania was a signatory to the peace deal.

The group's Phill Pullinger said the passing of the bill to repeal it was bad for the state.

"This really is a triumph of cynical, nasty, base politics over good public policy and the public good," he said.

Resources Minister Paul Harriss said Tasmania's logging industry could now seek new markets.

He said an advisory group would begin the task of scoping out options.

"That's the task now for the Ministerial Advisory Council to identify, and the industry could well be a different looking industry into the future," he said.

"There are opportunities out there."