AUSTRALIA'S consumer watchdog will conduct a safety review of children's toys as a massive international recall today prompted demands for an overhaul of importation laws.

US toy giant Mattel has recalled more than 22 million products made in China due to safety concerns over paint lead levels and loose magnets.

Up to 460,000 toys, including Batman and Barbie accessories sold in Australia, are part of the recall.

The New South Wales Government, consumer watchdog The Lead Group and an electrical testing company today said tougher laws were needed to deal with importing and testing children's toys.

Elizabeth O'Brien, president of The Lead Group which campaigns for the removal of lead from petrol and other products, says Australia does not have adequate laws for testing children's toys.

"This toy recall comes from outside of Australia and it was not something the Australian authorities detected, so parents shouldn't fool themselves into thinking that our government is protecting us," Ms O'Brien said.

She said the Mattel recall ought to prompt large recalls from other companies, but this was unlikely to happen because companies in Australia were left to carry out their own lead testing in toys.

"It is important Australia has the consumer legislation such as they have in the United States, where there is a limit on the total amount of lead that a child should be able to ingest from consumer products in a day," she said.

Acting NSW Trading Minister Barbara Kelly said the Federal Government needed to use its powers to check and stop dodgy products from passing through Australia's borders.

"They have the powers to do so, they have the powers to prevent these products from entering our borders in the first place," Ms Kelly said.

But David Stocks, managing director of International Compliance Testing, said testing had to be done at a design and manufacturing level before the products reached Australia.

Regulatory policies were in place which were intended to prevent companies selling unsafe products, but authorities had no way of enforcing them, he said.

"For many years the (Federal) Government has taken a softly, softly approach," Mr Stocks said.

"They don't ever want to be seen to be being heavy handed with the importers, distributors and the manufacturers."

He said the safety of toy imports could not be guaranteed because few were tested by state or federal government agencies.

A spokeswoman for the Australian Competition and Consumer Commission (ACCC) today said it was reviewing whether it needed to toughen safety measures for children's toys.

A review of the standards had been under way before the latest Mattel recall, she said.

"We're looking to see if there is need for an additional safeguards in the standard relating to magnets in toys in consultation with the appropriate agencies," the spokeswoman said.

The ACCC was also developing an Australian standard for lead content for toys, the spokeswoman said.