The New South Wales Government denies an increase in gun ownership across the state indicates a softening in the Government's stance on gun laws.

Figures from the New South Wales Firearm Registry show gun ownership has risen by 10,000 per year since 2004 to more than 687,000 in October this year.

But Police Minister Tony Kelly says New South Wales has the toughest gun laws in Australia and there is evidence that firearm offences are on their way down.

"Recent firearm statistics by the Bureau of Crime Statistics and Research show that over the last 10 years there's been a significant reduction in gun crime in New South Wales," he said.

"Last year, for example, firearm offences were down 20 per cent from the previous year."

Mr Kelly says New South Wales has strict penalties for improper use.

"The Government has progressively strengthened them," he said.

"Following the Premier's request, we're reviewing the Firearms Act.

"The vast bulk of gun owners are responsible, law abiding citizens.

"Illegal firearm use and trafficking in New South Wales continues to attract the highest penalties in the country."