Tasmania may become the first Australian state to legalise gay marriage - possibly as early as this year - after Premier Lara Giddings today vowed Labor would legislate it in this term of government.

The proposed laws would also be drafted to allow gay couples from across the country to get married in Tasmania - with Ms Giddings arguing that would help generate an economic boost and more jobs for the state.

The Premier told her party conference that its MPs would back new laws allowing same-sex couples to marry - and had obtained legal advice from the Solicitor General that there was no obstacle to stop it legislating on marriage at a state level.

"Labor has a proud history of tackling discrimination and introducing important social reform," she said.

"I expect the rest of the country will be watching closely as we work through this process.