Tasmanians may have to undergo mandatory bag checks in retail stores across the state under newly proposed legislation aimed at curbing theft.

The legislation, which was announced today, would allow employers at any store to physically inspect customers' bags as they exit a store.

Under current legislation, only employed security guards stationed at the front of stores have the authority to check bags.

Tasmania's retail sector, which is worth more than $6.1 billion, is estimated to lose in excess of $216 million to shoplifters each year.

In a statement, Tasmania's Building Minister Sarah Courtney said the legislation was a win for both retailers and customers.

"These amendments will not only protect the livelihood of Tasmanian retailers by helping to prevent shoplifting, but will also protect consumers by ensuring that bag checks are carried out in an appropriate and regulated way."

Loans for better CCTV under plan

Ms Courtney said the legislation was in keeping with the Tasmanian Government's commitment to crackdown on shoplifting rates across the state.

Police advice for shopkeepers: Be mindful that you do not have the power to detain a person unless you initiate an arrest

Be mindful that you do not have the power to detain a person unless you initiate an arrest While any person has the power under the Criminal Code 1924 to arrest a person they find stealing, Tasmania Police does not recommend this option unless the employee is a security officer who has completed nationally recognised training

While any person has the power under the Criminal Code 1924 to arrest a person they find stealing, Tasmania Police does not recommend this option unless the employee is a security officer who has completed nationally recognised training Always be mindful of your own safety and be aware that an offender could be carrying a concealed weapon

Always be mindful of your own safety and be aware that an offender could be carrying a concealed weapon If you do exercise the power of arrest, you must bear in mind that any force you use in order to make the arrest must be reasonable in the circumstances. You may be called upon to justify the use of any force in court.

If you do exercise the power of arrest, you must bear in mind that any force you use in order to make the arrest must be reasonable in the circumstances. You may be called upon to justify the use of any force in court. Employers have a Duty of Care to provide a safe work place for their employees. If an employee is injured while trying to arrest an offender, they may have a civil claim against their employer, particularly if the employee is inexperienced and/or has not received any security training Source: Tasmania Police

"This is in addition to the other initiatives ... designed to reduce shoplifting, including increasing police presence in shopping precincts, and providing a no-interest loan scheme to small businesses that want to install good quality, high-definition digital recording cameras for CCTV."

Executive director of the Australian Retail Association, Russell Zimmerman welcomed the proposal and said he hopes to see it implemented in every jurisdiction across the country.

"[This will] protect the livelihood of Tasmanian retailers and provide stability to the longevity of the retail industry," he said.

"The passing of this legislation will deliver certainty to consumers, assist in reducing retail theft and will also protect consumers by ensuring bags checks are conducted in an appropriate and regulated manner."

The laws copy those in New South Wales which Mr Zimmerman said had been effective.

"[With technological advancements] people are more likely to get caught stealing now than ever before," he said.

"But when the economy gets tighter, we see theft go up," he said.

He said luxury "feel good" items such as cosmetics are the most commonly stolen product, while small, easily concealed items such as baby food, razor blades and batteries are also frequently lifted.

He said the rate of items being flogged from shelves is likely to pick up significantly over the Christmas season — the peak trading period for retailers.

The Australian retail sector is estimated to lose in excess of $9 billion of its total $310 billion to theft.

Other initiatives include a loan scheme for "good quality, high-definition CCTV" systems. ( supplied: City of Melbourne )

Cinema owner and president of the North Hobart Traders Association, John Kelly, described the legislation as "a big step forward" and said "the sooner it is implemented the better".

He described theft as being rife on the North Hobart strip, but a particularly "big issue" at his State Cinema bookshop.

"Retail margins are getting tighter all the time and theft can absolutely crucify retailers, especially small traders, which makes up the whole strip in North Hobart," he said.

"It's demoralising for businesses and it makes it awkward for staff."

He estimated between 5 and 7 per cent of the bookshop's revenue was lost to thievery.

"Even with security cameras it's always tough … we've caught them on video but by the time you do all this they're out the door and then it becomes a clunky system and police have to deal with it all after the event," he said.

Mr Kelly said the current situation where retailers are "powerless to take immediate action" on thieves was "unworkable" and that legislation needed to be updated urgently.