NSW Premier Gladys Berejiklian has announced new changes to improve safety at music festivals, following the two deaths at Defqon. 1 festival earlier this year.
An expert panel, convened in the wake of the deaths, has made several suggestions - including the introduction of a new offence.
This will see drug offences held accountable for deaths caused as a result of drug consumption.
"Drug dealers who prey on our young people, and seek to profit by peddling illicit substances at music festivals, are on notice," Ms Berejiklian said.
"Music festivals are a significant part of NSW’s entertainment scene, and an important part of our economy - but we owe it to young people, and their parents and families, to make sure they are safe.
"The new licensing regime we are introducing, combined with better regulatory coordination, will ensure that events with a poor track record and heightened risk will face greater oversight from the authorities."
The NSW Government will also be trialling on-the-spot fines for people who are found in possession of illegal drugs at music festivals.
This is instead of a court attendance notice being issued.
There will also be a focus on education around illegal drugs.