Ms Palaszczuk had held what is considered Queensland’s safest Labor seat since 2006.
However she finished up as Inala MP on December 31 following her shock resignation weeks earlier as premier after almost nine years in the top job.
Voters in the Inala electorate are set to go to the polls on March 16, coinciding with local government elections.
No matter who wins, it will mark the first time Inala will not be represented by a Palaszczuk family member.
Contested for the first time in 1992, the electorate in Brisbane’s southwest was first represented by Ms Palaszczuk’s father Henry.
He went on to become a senior minister in the Peter Beattie government before retiring in 2006.
His daughter Ms Palaszczuk succeeded him as Inala MP, going on to become premier from 2015 to 2023.
Steven Miles became Queensland’s 40th premier when he took over the reins from Ms Palaszczuk last month.
“I want to pay tribute to Annastacia Palaszczuk and thank her for her service,” Mr Miles said.
“I am looking forward to continuing the strong legacy our government has built for the Inala electorate and all Queenslanders.”
The Queensland opposition had been critical of the delay in holding the Inala by-election, saying it was not acceptable that the community was without representation for several months.
But Mr Miles said he had recommended that Queensland Governor Jeannette Young call the Inala by-election for March 16 after advice from the Electoral Commission of Queensland.
“It makes sense to hold the by-election on the same day as the local government elections to save on administrative and operational costs,” he said.