The ACT Government could consider setting up pill testing outside the bounds of the Spilt Milk festival, after it was denied permission to provide the service on Commonwealth land, Justice Minister Shane Rattenbury has said.

Key points: NCA denies pill testing on Commonwealth land

NCA denies pill testing on Commonwealth land ACT Government could consider offering service outside

ACT Government could consider offering service outside Senator Zed Seselja says drugs "never safe"

Canberra hosted Australia's first pill testing trial at the Groovin the Moo festival in April, and advocates had been working with the territory Government to see the service delivered at Spilt Milk in November.

But the National Capital Authority (NCA), which controls the Commonwealth land where the festival will be held, says there's no legal framework in place for pill testing, raising concerns the process could imply illicit substances are safe.

The decision comes as debate grows about pill testing in New South Wales, after two people died at the Defqon festival in Sydney over the weekend.

ACT Greens Leader and Justice Minister Shane Rattenbury said the Government may explore whether to provide pill testing services on ACT land near the festival.

"We've seen the terrible consequences that can arise on the weekend just gone at the Defqon festival in Sydney," he said.

"We'll continue to make the case to the NCA … I don't hold out great hope.

"We could certainly allow it to take place on ACT Government land somewhere nearby, it could be at the bus interchange because a lot of people come through there.

"It would literally be a lines on a map discussion."

Mr Rattenbury said that approach would likely be less effective than offering the service inside the festival.

NCA made right call: Seselja

Plans were scuttled to have last year's Spilt Milk festival host the pilot trial that later happened at Groovin the Moo.

Liberal senator for the ACT Zed Seselja said the NCA had made the right call.

"I think that the National Capital Authority has made the right decision, though I think they're an independent body and so they can make their own judgements about what's appropriate on Commonwealth land.

"There's no doubt that illicit drugs, even if they're tested are not very likely to be safe.

"It doesn't mean that you can't overdose, it doesn't mean that it can't have a serious impact on someone's health."

Late last week ACT Health Minister Meegan Fitzharris wrote to her federal counterpart Greg Hunt, requesting the Federal Government's support of pill testing.

"I urge you to take a strong stance on this issue as your leadership has the potential to save a life," she said.

Emergency doctor David Caldicott, who has advocated heavily for pill testing at Canberra festivals, said governments were "morally beholden" to allow pill testing.

"The population of the ACT have every right to feel peeved about interference in a health matter that seems to be almost exclusively political," he said.

"We are of the firm belief that pill testing has a role to play in keeping young Australians safe.

"We can only discuss lifestyle choices with young people if they are alive."

Dr Caldicott said he held out hope minds, or officials, could be changed before the festival.

"It's still a long time away from the event," he said.