Communications Minister Stephen Conroy says the media watchdog must be beefed up after it was unable to take direct action against shock jock Kyle Sandilands for an on air attack against a female journalist.

The Australian Communications and Media Authority (ACMA) said it could not take direct action against Sandilands after he made offensive comments about the journalist.

Instead, it imposed a new licence condition on his employer, Southern Cross Austereo, to ensure it did not broadcast material that demeaned women or children.

Senator Conroy says it is clear that ACMA must have more effective powers.

"The ACMA has a gap in its regulatory armoury, and the convergence review is talking about possible extra powers for ACMA, so instead of just having the slap on the wrist or closing down the station there are what you'd call mid-tier powers," Senator Conroy said.

"Fines would fall into that category. I'd give that serious consideration."

ACMA launched a two-month investigation in January after Sandilands called a News Limited journalist a "fat slag" and threatened to "hunt her down".

He made the comments while presenting his 2Day FM breakfast show in Sydney on November 22.

The female news.com.au journalist had written a scathing review of Sandilands' A Night With The Stars television show, which aired on the Seven Network.