Australia's cosmetic surgery industry is facing increasing scrutiny by a state government, which is considering potential strict new rules following a series of horror cases from botched surgeries.

The state's newly released discussion paper will consider what standards should apply and whether the new class of cosmetic surgery facilities require special licensing.

New South Wales state Health Minister Jillian Skinner said on Wednesday that recent incidents, including a woman who was rushed to a hospital in September from a suspected heart attack reportedly during breast enhancement surgery, had raised concerns about current regulation of the industry.