Federal Labor backbencher Steve Gibbons has called for fines for journalists who publish misleading or incorrect stories.
Mr Gibbons, the Member for Bendigo, told Parliament that people were losing faith in journalism and voiced concerns about the lack of accountability in the sector.
He said recommendations from the Finkelstein independent review of the media did not go far enough and journalists should be fined for their errors.
"Fines such as these for publishing blatant untruths or misleading news reports, or temporary suspensions of the right to publish or broadcast, would lead to a major improvement in the accuracy and fairness of our media," he said.
Mr Gibbons said he supported free speech, but inaccurate reports degraded public debate on issues of national significance.
"When a media outlet, journalist or redneck shock jock deliberately broadcasts or publishes a statement that they know is factually wrong, and it is subsequently proven that they knew it was factually wrong, they ought to be subject to an appropriate penalty," he said.
Liberal National Party backbencher Paul Neville said he was concerned the Government was trying to justify plans to step up controls on the media.
"To desperately try to link it to the UK hacking scandal and the Leveson inquiry is as pathetic as it is opportunistic," he said.
"I suspect the Member for Bendigo has been asked to put his toe in the water and test the mood of the public to greater media control." The Federal Government is yet to announce its formal response to the .