The Tasmanian Aboriginal Centre has welcomed the Tasmanian Planning Commission's recommendation to not proceed with Hobart's contentious Macquarie Point stadium.

In handing down its final report last week, the Commission cited size and location, poor urban planning and the cost on Tasmania's budget with limited returns in its advice against building the $1.13 billion dollar infrastructure project.

Following the final report's release, the Tasmanian Aboriginal Centre (TAC) said the advice creates "a once-in-a-generation opportunity for truth, justice, and Aboriginal land return" in the heart of Hobart.

In a statement provided to National Indigenous Times, Tasmanian Aboriginal Centre campaign manager, Nala Mansell, said the Country of Macquarie Point has deep cultural ties to the Mumirimina people of the Oyster Bay nation.

"It was here that the British first invaded lutruwita/Tasmania in 1804," Ms Mansell said.

"It was here our ancestors were driven from their homelands, massacred at Risdon Cove, and forced into exile. And it is here that we continue to fight for justice today."

The TAC labelled the rejection of the stadium not just a planning decision, "but a chance to correct more than two centuries of injustice".

"For too long, governments have spoken of reconciliation while denying land return, spoken of truth telling while erasing our voices, and spoken of culture while excluding our people from decision making," Ms Mansell said.

"This decision provides the opportunity for Macquarie Point to become a landmark of Aboriginal justice; a turning point toward real Treaty and truth telling in Tasmania. But that can only happen if the land is returned to its rightful owners."

Tasmanian Senator and Palawa woman Jacqui Lambie has also criticised the Tasmanian Government's deal with the AFL requiring a stadium at Macquarie Point.

"My message to the crossbench [upper house independents] is to find the courage the premier can't," Senator Lambie told the ABC.

"They need to block this stadium and pressure the government to go back to the AFL and renegotiate this shocking deal.

"Tasmania deserves an AFL team — we should have had one years ago — but we don't deserve to be bankrupted by a stadium that we don't actually need.

"According to the TPC [Tasmanian Planning Commission] report, the government will have to raise taxes by $50 million a year to pay for it."

Following the report's release, Tasmanian premier Jeremy Rockliff doubled down on the Tasmanian Government's intention to go against the Commission's advice and build the roofed, 38,000 seat stadium at Macquarie Point.

He said many issues raised in the report, such as noise and access, could be overcome.

"What the report has massively underestimated, though, is the economic and social value of such a precinct redevelopment. And that opportunity of course with the Tasmanian Devils AFL team," he said, the ABC reports.

"My passion and commitment to this project, to the Tasmanian Devils and the aspirations of our young people, has only strengthened my resolve as a result of this report."

The report's release prompted the Greens, who remain firmly against the proposed stadium, to warn of future budget blowouts which they say will significantly impact the state's bottom line.

"The stadium has already had four budget blowouts and the Tasmanian Planning Commission's report makes clear if the stadium is to be built, there will be more," Greens MP Vica Bayley said.

"But if this project is to go ahead, the cost blowouts won't stop there. The Tasmanian Planning Commission has identified a number of additional costs which will be necessary for the stadium to operate.

"Continuing budget blowouts are going to add to the dire situation of accumulating state debt. The Planning Commission highlights the challenge of servicing and paying off this debt, flagging increased taxes or cuts to services.

"With the Premier ruling out taxes and health and housing services Tasmanians already underfunded and failing to meet Tasmanian's needs, we simply can't afford a stadium."

In an alternative proposal to the stadium, the TAC called for the full return of Macquarie Point to Aboriginal ownership, an end to all major developments at the site until Aboriginal land return is negotiated, and the opportunity for the Aboriginal community to shape a vision for the site which could include an Aboriginal cultural centre.

"We don't want another reconciliation park. We don't want another colonial monument," Ms Mansell said. "We want land back."

The TAC said it will continue to press its campaign as a fight for land justice, not just planning reform.

"At every step, the Centre will remind the public that nipaluna is Mumirimina Country, expose government tokenism, and call for real action on Treaty, truth-telling, and Aboriginal empowerment," it said.