The parliamentary committee reviewing Tasmania's anti-corruption watchdog says its investigative powers should not be stripped.

The Government wants to slash the alibility for the Integrity Commission to investigate government corruption, claiming that it is costly, inefficient, and unnecessary.

It argues that because there appears to be less corruption in Tasmania, the body tasked with finding it should be weakened.

The Government suggests abolishing the board and reducing it to a referral body only.

But in its latest progress report, the committee reviewing the Integrity Commission said it wanted to improve the existing model, including its investigative and educative functions.

The report describes some internal division over its final stance.

The review committee members Shadow Attorney General Lara Giddings, Greens MP Nick McKim and MLCs Ivan Dean, Tony Mulder and Mike Gaffney, were in favour, but Liberal MP Guy Barnett voted against it.

Commissioner Dianne Merryfull has recently questioned why the Tasmanian Government appears not to consider corruption to be a problem, despite its existence in every other state jurisdiction.

The final report into the Integrity Commission will be tabled on the first sitting day of Parliament next year.