Tasmanian Premier Paul Lennon says he has a mandate to move the state forward after Labor's third successive state election win.
Labor claimed 14 seats and the Liberals seven in the poll.
But in an election shock, the Greens look set to lose official party status following a poor result, which the party blamed on a smear campaign by the major parties and a reclusive religious group.
Official status in Tasmania's 25-seat lower house requires four sitting members but the Greens have only won two seats, with two others undecided.
Labor's victory gives the party its third successive majority government for the first time since 1979, despite a 2.3 per cent swing away from the party.
Mr Lennon, who took over as premier from the popular Jim Bacon, who stood down in 2004 and later died from lung cancer, said he felt he had won the job on his own merit.
"I'm very humbled by the result and I'm determined to make sure we're a good government for Tasmania," he said.
Mr Lennon topped polling, winning 14,878 votes in his electorate of Franklin.
He pledged to lead the nation economically and socially, listing Aboriginal reconciliation as top of his agenda.
"Until we make our final peace with the Aboriginal people we won't be the culturally confident society that I want Tasmania to be," Mr Lennon said.
"That's why one of the first things I want my government to do is resolve the stolen generation once and for all."
Mr Lennon said it was still too early to say what the final make-up of his new government would be.
"Now what we have to do is wait and see what the final results is, what the final cut-ups are and who's finally elected," he said.
However, Mr Lennon has made a decision on who will be his new deputy following David Llewellyn's decision to step down from that role.
Mr Lennon said he had called Bryan Green to offer him the job.
Opposition leader Rene Hidding said the Liberals would meet soon to discuss the election wash-up. The party recorded a 4.6 per cent swing towards it in Saturday's election.
Insiders have tipped a leadership challenge, but Mr Hidding said he was confident he would have the support of his party if he wanted to remain leader.
"Whether I'll contest or not is something that I'll bend my mind to in the next week or so," Mr Hidding told ABC radio.
Greens leader Peg Putt blamed her party's disappointing result on a smear campaign by Labor, the Liberals and anti-Greens advertisements placed by the reclusive religious group Exclusive Brethren.
The Greens had hoped to win six seats and gain the balance of power in a minority government.
Ms Putt refused to concede any losses but warned the Greens would become more hard-nosed in the future.
"The Greens, despite coming into the poll looking like we could gain more seats, we just couldn't come back over the top of the negative fear and smear campaign that was run against us from so many quarters," she said.
"Perhaps we need to take another look at the fact that negative campaigning has become the norm in Australian politics and that other parties are using that to drive where the electorate goes."
Greens MP Tim Morris is likely to retain his Lyons seat on preferences but strong Labor support in Bass looks set to oust his colleague Kim Booth.
Despite the loss, Mr Lennon said he would not write off the Greens as a political influence in Tasmania.
"I would not say they were a spent force," he said.
"I think they have a permanent support base in Tasmania ... and they'll be back I reckon."
One seat in Franklin also remains too close to call, with Education Minister Paula Wriedt in danger of losing her seat to Liberals' candidate Vanessa Goodwin.
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