Legislation to declare the Macquarie Point waterfront proposal a project of state significance passed parliament's upper house late on Wednesday afternoon.
It means the project, slated to cost $715 million, will be assessed by the state's planning commission.
For final approval, the project will then need to be voted through both houses of parliament.
Construction of a 23,000-seat roofed stadium at Macquarie Point was a condition of the AFL granting the island state a team licence.
Independents Lara Alexander and John Tucker welcomed the upper house vote.
The Liberal government was forced to pursue the commission assessment process as part of a deal with two MPs who quit to the cross bench and plunged the government into minority.
The two MPs, Lara Alexander and John Tucker, cited concerns about the transparency of the stadium project and AFL deal.
Premier Jeremy Rockliff said the commission would assess broad environmental, social and economic aspects of the project.
He said the design for the stadium would be worked through during the next 12 months.
Nine upper house MPs, including Liberal and Labor opposition members, voted to pass the legislation.
Labor is opposed to the stadium but says allowing the planning commission assessment is the best chance of getting answers about the true cost.
Independent Ruth Forrest was one of five upper house MPs to vote against the legislation.
"I'm not averse to a new stadium but I am averse to being dictated to by those outside the state," she told parliament.
"The government proposal carries enormous financial risk."
Mrs Alexander and Mr Tucker welcomed the upper house vote.
"Any decision on the Macquarie Point stadium arising out of the (planning commission) process will have no effect until approved by both houses," Mrs Alexander said.
"That is very important because the premier has signed a blank cheque to cover the demands of the AFL and they're planning to send this bill to Tasmanian taxpayers."
Tasmania's government is solely responsible for any stadium cost overruns.
The AFL has said 2028 is a likely start date for a team, with the government facing financial penalties if the stadium isn't built by 2029.
Hundreds rallied in Hobart earlier this year against the stadium, arguing the money could be better spent on under-pressure essential services.
The government has pledged $375 million toward the project, while the federal government has committed $240 million for the broader Macquarie Point development.
21°C