The NSW government will introduce legislation to parliament on Tuesday amending the crimes act to include the offences of having a knife in a public place or school and wielding a knife in a public place or school.
These offences are currently dealt with under the summary offences act.
The move will mean the maximum jail term for those offences will increase from two to four years.
The maximum fine for possessing a knife will increase from $2200 to $4400, and for wielding a knife to $11,000.
Attorney-General Michael Daley says the reforms strike the right balance and will send a strong message about the seriousness of knife-related crime.
"The government is acting to address understandable community concern given the high-profile tragic events involving knives that we have seen in NSW over the last couple of years."
The reform comes two months after 29-year-old paramedic Steven Tougher was stabbed to death while on a meal break at McDonald's in Campbelltown in Sydney's southwest.
His death shocked the community and devastated his family, colleagues and pregnant wife Madison who gave birth to their second child last month.
Under the proposed reforms criminal justice diversion mechanisms for young people and first-time minor offenders will be retained.
The offences of possessing a knife and wielding a knife will be Table 1 offences, meaning they will be tried summarily unless the prosecution or defendant elects otherwise.
A penalty infringement notice can still be issued to an adult for a first offence for knife possession, which means the person would not need to attend court.
Children and young people will still be eligible to receive a caution or referral to youth justice conferencing where appropriate.
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