New South Wales Premier Gladys Berejiklian will introduce harsher penalties for drug dealers who supply drugs to festival-goers, in an effort to improve safety at state music festivals.

The move is part of a list of recommendations by an expert panel into festival safety, created by the Premier following the deaths of two young people who attended the Defqon.1 festival in Sydney in September.

"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," Ms Berejiklian said.

The panel made seven recommendations, all of which have been accepted in principle by the NSW Government.

The new penalties include ensuring drug dealers are held responsible for any deaths they cause at music festivals, which could see them spend up to 25 years behind bars.

"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.

The exact penalty is yet to be determined, but Police Commissioner Mick Fuller said it would be on a par with manslaughter.

"Certainly the stronger the charge, the better – we imagine it would be around a manslaughter, grievous bodily harm type charge," Mr Fuller said.

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The state government will also trial on-the-spot fines for people who are caught in possession of illegal drugs at music festivals, instead of issuing a court attendance notice.

"Together with ongoing, high visibility policing at music festivals, these measures will send a very strong message that illegal drug dealing and drug use will not be tolerated in NSW," Minister for Police Troy Grant said.

Pill testing was considered "outside the terms of reference" for the expert panel, however they did acknowledge the issue was raise by several stakeholders.

"In tasking the Panel, the Premier made clear that the NSW Government has no tolerance for illegal drugs and pill testing is not within the terms of reference," the report states.