Tasmanian Premier Will Hodgman is resigning after almost two decades in politics, saying he believes it is the "right time… to allow for new leadership".

Key points: Will Hodgman made the surprise announcement at a last-minute press conference

Will Hodgman made the surprise announcement at a last-minute press conference He said his role in Parliament had had an "undeniable impact" on his family and he had informed Cabinet of his decision on Tuesday morning

He said his role in Parliament had had an "undeniable impact" on his family and he had informed Cabinet of his decision on Tuesday morning Mr Hodgman led the Liberal Party to victory in Tasmania in 2014, securing a second term in 2018

In a surprise media conference on Tuesday afternoon, Mr Hodgman said being premier was an honour and privilege.

"I've given this job everything. But I do believe it's the right time for someone else to do it," he said.

He said he told Cabinet of his decision on Tuesday morning and that he expected the Liberal Party would meet next week to make a decision as to who would take over as leader of the party.

Mr Hodgman will have to remain in his position until his successor is chosen.

"As we approach the halfway mark with two more years of this term of government, I believe that now is the right time for me to allow for new leadership," he said.

"It's unlikely, indeed would not be the case, that I would want to contest the next election, so this gives new leadership an opportunity at this point in time with the foundations well set.

"I have no doubt that the team I have had the privilege to lead not only has a clear plan to keep our state moving forward in a positive direction, but also to tackle the challenges that we have always acknowledged in this term of government."

Hodgman quotes Prince Harry and Meghan Markle

Will Hodgman says it's "the right time for someone else to do" the job. ( ABC News: Mitchell Woolnough )

Mr Hodgman thanked his wife Nicky and his three children for their support.

"There is no denying that this job has an impact on our personal life and our family," he said.

"But we've done it together, and they've supported me all the way."

Nicola Hodgman had tears in her eyes as she watched her husband. ( ABC News: Mitchell Woolnough )

Mr Hodgman said had no plans for what is next, making a joking reference to Prince Harry and his wife Meghan's recent announcement they would step back as senior royals.

"I don't know — I have no job to go to," he said.

"But I am looking forward to becoming financially independent."

Government a family tradition

Will Hodgman's career timeline: 1993 — Graduates in arts and law from the University of Tasmania 1994 — Admitted as a barrister and solicitor of the Supreme Court of Tasmania 1995 — Works in the United Kingdom with the Wiltshire County Council 1998 — Returns to Tasmania to work at a law firm, practising in criminal law and personal injury 2002 — Elected as a Liberal Member for Franklin in the Tasmanian House of Assembly and appointed Deputy Leader of the Opposition 2006 — Becomes leader of the Liberal Party and the state opposition 2014 — Leads the Liberal Party to an election win against a Labor government led by Lara Giddings 2018 — Secures a second term for the Hodgman Government 2020 — Announces resignation

Mr Hodgman became the 45th premier of Tasmania in 2014, leading the Liberal Party to victory over a 16-year incumbent Labor government led by Lara Giddings.

He secured the largest majority for any Government since the 25-member Parliament was established in 1998 and was the fifth non-Labor premier in 80 years.

He won his second term in the 2018 state election.

Since the 2018 election, the Hodgman Government has faced a groundswell of criticism about the state's health system.

It has also been in the spotlight due to Tasmania's ongoing housing crisis.

He and his wife have three children — William, James and Lily.

His father, uncle, and grandfather also served in the Parliament of Tasmania.

Labor, Greens say Hodgman 'respected', 'likeable'

Opposition Leader Rebecca White wished Mr Hodgman and his family all the best.

"Outside the cut and thrust of Parliament, Will and I have always respected each other despite our political differences," she said.

"I recognise Will's love for Tasmania and his passion for this great state and I know that has driven him.

"Will Hodgman has given a long period of service to the state and I respect his decision to spend more time with his wife and kids."

Will Hodgman was elected as Tasmania's Premier in 2014. ( ABC News: Ellen Coulter )

Greens leader Cassy O'Connor said Mr Hodgman left his mark as a popular Liberal Premier.

"On a personal note, I've always found Will to be very likeable and excellent company outside Parliament," she said.

"We have clashed in the House over the direction his Government is taking Tasmania — but that's politics, a sometimes fierce contest of values.

"I wish Will, Nicky and their three children a very happy life together post-Parliament whatever direction it takes them."