The Australian Chamber of Commerce and Industry (ACCI), in a submission to the review, said the NSW state system placed too much emphasis on prosecution.
It called on federal and state and territory governments to adopt a balanced and effective approach to harmonising OHS regulation.
"ACCI and its members are strongly committed to practical improvements in workplace safety as well as OHS standards that are reasonable and workable," the submission said.
"OHS laws, even when balanced, impose significant regulatory burdens on businesses."
Industry strongly supported efforts to reduce red tape and unnecessary regulation burdens, the chamber said.
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