Immediate action is needed to tighten drone regulations to improve safety, a Senate inquiry has found.

The inquiry into the use of drones and associated technologies has called on the Federal Government to toughen laws on the use of small drones, which would affect thousands of users.

The Senate Rural and Regional Affairs and Transport References Committee is currently investigating regulation and safety measures for the use of “remotely piloted aircraft systems”, “unmanned aerial systems” and “associated systems (drones).”

The committee, chaired by Senator Glenn Sterle (WA) comprises Senators Barry O’Sullivan, Chris Back and Anthony Chisholm (QLD), Senator Janet Rice (VIC) and Senator David Fawcett (SA).

Last week the committee released a number of preliminary recommendations, before presenting its final findings in December this year.

In a statement the committee said: “There are growing concerns both within the aviation industry and amongst the general public about the safety of recreational drone use.

“These concerns emanate from an increasing number of reports of aviation incidents and mounting fears of the real prospect of a serious accident.”

The committee is calling for:

• Stricter regulations through obligatory safety awareness
• Training for recreational drone users before they purchase and use the devices
• Tracking by the Civil Aviation Safety Authority (CASA) of all registered drones regardless of size or intended use
• The introduction of geofencing technology to prevent collisions between drones and aircraft, especially in high traffic areas

The committee is also looking into mandatory flight logging and the display of registration marks.

Last September, the Civil Aviation Safety Authority (CASA) relaxed rules around the use of small drones.

They can now be used without registration or a remote pilot's licence but operators must abide by general aircraft rules, including keeping away from flight paths.

Queensland senator Barry O'Sullivan told ABC News he fears a "catastrophic" accident as a result.

The regulations were removed too quickly, he claims.

Senator O'Sullivan wants the Infrastructure Minister Darren Chester to consider re-introducing regulations immediately.

No rules in place

"These people have got these pieces of tin with no training, no proficiency — up they go," he said.

"We do not even have rules about whether they are intoxicated or not. There is nothing."

However, many industries welcomed the chance to fly drones without the hassle of red tape, and farmers use them for everything from aerial mapping to working out where crops need water.

Senator O'Sullivan, who investigated aircraft crashes in his earlier career, is worried an amateur could fly a drone into a crop duster or even a passenger jet.

"If the two come into contact with each other, the result is probably catastrophic," he said. 

To date there have been no collisions between drones and manned aircrafts in Australia.