The department has faced criticism over its management of public land, including how it allows public access to parks and forests.
State Member for Murray Plains Peter Walsh has called for Parks Victoria to be immediately shut down.
Mr Walsh said its responsibilities should be returned where they belong – the Department of Energy, Environment and Climate Action.
He said the proposed review of the “mismanagement that is Parks Victoria” would be a “senseless waste of time and a lot of taxpayer money”.
“Parks Victoria is out of control and a mess – it has no credibility and is beyond repair,” Mr Walsh said.
“Everything it touches turns into a disaster, and instead of our wonderful parks and reserves being a massive attraction to locals and tourists, Parks Victoria is doing everything it can to wreck it all with ridiculous decisions, a negative approach, and a total lack of accountability.
“Just look at the chaos it is in the process of creating at Mt Arapiles. Yet another outrageous restriction to public land access, threatening the local economy as tourists and rock climbers who go there from around the country are turned away.
“What we need is common sense management which helps preserve heritage without restricting outdoor activities — we want solutions which consider the environment, heritage, and community without banning recreation, damaging tourism, or hurting the local economy.”
This year, a plan by Parks Victoria and Forest Fire Management to set fire to fallen timber in Barmah National Park attracted widespread condemnation.
The department has also been facing criticism over the way it has managed brumbies in the same park.
Contracted shooters were instructed to hide the dumped carcases in the forest.
Parks Victoria manages more than four million hectares of parks and reserves which attract more than 100 million visits every year.
“It’s clear that Parks Victoria's current operations need to be improved to meet community expectations,” Victorian Environment Minister Steve Dimopoulos said.
“I have therefore ordered a comprehensive review of Parks Victoria, to advise how the organisation can better serve the needs of Victorians and help them enjoy the great outdoors.”
The review will focus on Parks Victoria’s priorities, the delivery of its objectives under the Parks Victoria Act 2018, the organisation’s administration, finances, functions and delivery model — to identify ways the organisation reduce red-tape, improve customer service, and deliver better outcomes for Victorians.
The review will be completed by March next year, and will be overseen by the Victorian Government with the support of Korda Mentha.
Mr Dimopoulos said Mr Jackson had left his CEO position “by mutual agreement”.