Minister for Infrastructure and Transport, Kerry Vincent, said Tasmania has a bright future.
"The Department of State Growth has delivered a decade of growth under our stewardship," Minister Vincent said.
"It has revolutionised the state, and we should acknowledge this fantastic work.
"As we enter a new era of opportunity, now is the time to evolve and to keep this progress going, sharpening our focus on delivery.
"It is vitally important to have housing, infrastructure delivery and everything that builds our great state all under one roof.
"This will make things more efficient, streamlining how we do things and allowing us all to benefit from a focused system.
"It will get things done.
"Importantly, it will mean we're delivering the best possible outcomes for Tasmanians.
"This change will also save the budget a quarter of a billion dollars."