Keeping native animals as pets would be legalised under a plan put to the NSW government that would remove licence requirements for native birds, reptiles and some mammals and focus instead on educating pet owners.

But the idea has been criticised on animal welfare grounds by wildlife protection groups, who are already dealing with sick kangaroos erroneously fed cows' milk and gliders dying after being fed fruit and bread. They argue native animals shouldn't become "another commodity".

Great pets: An eastern quoll, spotted in Tasmania.

The recommendation to loosen restrictions on pet ownership and licensing of native animals has been made by the Independent Biodiversity Legislation Review Panel, chaired by Neil Byron.

Dr Byron said there are three blue-tongue lizards living in his backyard and he believes "the government doesn't need to be involved".