The party on Friday announced the operations of the state conference and current administrative committee would be suspended for up to three years.
Labor has been in opposition in Tasmania since 2014, with the party suffering a swing against it at the May federal election despite widespread success on the mainland.
State Labor leader Rebecca White, who has led the party to election losses in 2018 and 2021, said the party's culture needed to improve.
"We need all arms of the party to be working smarter, and better together. Our party was not at its best last year," she said.
She said the party needed to be more inclusive and have appropriate mechanisms for the handling of complaints and disputes.
Ms White quit as leader following the 2021 loss but was reinstated several weeks later after her replacement David O'Byrne resigned from the role following accusations he harassed a junior employee years ago.
First term upper house member Bastian Seidel quit politics in August, slamming a toxic party environment and leaks.
Former state president Ben McGregor stood down as a candidate in the lead-up to the 2021 state poll over inappropriate text messages he sent to a colleague seven years ago.
He subsequently threatened Ms White with legal action after she said he wasn't fit to sit in parliament.
Former senators Doug Cameron and Nick Sherry have been appointed as administrators of the branch and will be responsible for governance and administration.
Mr Sherry conceded the party's brand in Tasmania had suffered in recent years.
"The disappointing behaviours ... have flowed through to our poor electoral performance. This has got to end. It stops now," he said.
An annual policy forum will replace the yearly state conference and ensure branch members, trade unions and state and federal parliamentary members can contribute to discussion.
"Tasmanian Labor needs a circuit-breaker to rebuild," national secretary Paul Erickson said in a statement.
"This intervention is about improving the culture of the branch, reinstating trust, respect, transparency and a party-first approach to internal decision-making."
Mr Erickson said the decision was supported by Prime Minister Anthony Albanese.
"(This will give us the) best chance of returning to government in 2025 and to support the re-election of the Albanese Labor government in 2025 with more Labor members," Ms White said.
Labor holds two of five federal seats in Tasmania. It won nine of 25 lower house seats at last year's state poll.
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