Tasmania's Liberals are aiming to form minority government with a mixed, potentially hostile group of cross bench members after Labor stepped back from the contest.
Australia's only Liberal government, led by Jeremy Rockliff, is on track to win more seats than Labor after Saturday's state election but not the 18 required for majority.
Mr Rockliff called the early election in an attempt to "restore stability" after eight months of minority government but now faces an ever bigger cross bench.
Counting, which continued on Sunday but likely won't deliver a final result until April 10, had the Liberals with 13 seats, potentially on track for around 15, with Labor on 10.
The Greens have three and could finish with as many as six, with the Jacqui Lambie Network (JLN) on two. Two independents are also likely to be elected.
Labor leader Rebecca White, who didn't concede defeat on election night, said on Sunday it would be "very hard" for her party to form government.
"Jeremy Rockliff will be given the first opportunity under conventions to test his numbers and seek support from the parliament," she said.
"Ultimately it will be up to him to make it work."
Mr Rockliff said he had reached out to the JLN, as well as independent former Labor leader David O'Byrne who appears set for a seat in Franklin.
"I look forward to discussions over the coming week," he said.
The Liberals suffered a 12 per cent swing against them but Labor only picked up a one per cent boost and just 29 per cent of the first-preference vote.
"The Tasmanian people have spoken. They've given us a bit of a kick, I accept that," Mr Rockliff said.
"That is a message they expect more from their government."
Mr Rockliff said he would "double down" on health, housing and cost-of-living relief but also indicated policy positions taken to the election wouldn't change.
Senator Lambie had lashed the Liberals for a grubby campaign, which involved a mock JLN website.
"It was a very open, frank conversation," Mr Rockliff said of their post-election chat.
"We’re going to have discussions, we’re going to talk through that in a very open and mature way."
Mr Rockliff said the vote wasn't the death knell for plans for a new $715 million Hobart stadium, a condition of the state's licence for an AFL team.
The project, supported by the Liberals but opposed by the Greens, Labor, some independents and rubbished by Senator Lambie, must be voted through parliament.
Greens leader Rosalie Woodruff accused Labor of "gifting" the Liberals government.
"Twelve hours in, with many seats still up for grabs ... the Labor Party have walked away from the opportunity voters gave them," she said.
"Instead of considering their options and working with the cross bench, Labor appears to have picked internal politics over possibility."
Ms White didn't explicitly rule out trying to form government if the Liberals couldn't but that may not be mathematically possible.
She said she wouldn't make any declarations about her future as leader.
Tasmania's parliament is being restored from 25 to 35 lower house members - each of the five electorates will be represented by seven MPs.
