The federal government is giving the states and territories until July to agree to a new R18+ classification for video games.

Home Affairs Minister Brendan O'Connor said Australia - now the only developed country without such a video game rating - had become a laughing stock.

Home Affairs Minister Brendan O'Connor.

"We're the only country that allows tens and tens of games to be used by minors that are only used by adults overseas," he told ABC Television.

"We're becoming the laughing stock of the developed world."