The Tasmanian Government is on track to notch up its first major legislative victory in Parliament.

Its bill to dismantle the forest peace deal has all but passed the Upper House.

The Legislative Assembly has passed a raft of changes to the bill meaning Thursday's final vote is a formality.

Earlier the MLCs backed the principle of the legislation, nine votes to five.

After four years of negotiations and countless hours of debate in Parliament, the forest peace deal has come full circle.

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

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

Resources Minister Paul Harriss told Parliament it was a turning point for the state.

"It puts a stop to 30 years of encroachment of the Green tide which has smashed our economy and busted our budget," he said.

But Greens Leader Kim Booth said it was about getting back at the former government.

"Repealing the TFA is all about revenge, it's not about good governance and it's not going to give a good outcome to the forest industries in Tasmania," her said.

Sorry, this video has expired Forest peace deal death knell ( Annah Fromberg )

It's the first major piece of legislation the Liberal Government has been able to get through the parliament albeit with a few amendments to appease the specialty timbers sector.

It will be able to source wood from certain areas, without having to adhere to Forestry Tasmania's standards, but not for another three years.

Phill Pullinger from Environment Tasmania said it was an unsustainable situation.

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

"Moving to open those places up to logging is a recipe for conflict so it's sad the Government has take this backwards approach, ultimately it's a approach that will fail," he said.

Terry Edwards from the Forest Industries Association was cautiously optimistic the industry would benefit.

"I think the passage of the bill is the first step in that process, there's a lot of work still to be done but this is an important milestone," he said.

It is good news for the Liberals on the eve of the state budget.

The bill will move to its third reading in the Legislative Council on Thursday, before MLCs have their final vote.