The Tasmanian Seafood Industry Council wants the federal government to establish a rehabilitation fund for undersea seismic testing.
A Senate inquiry has been established to look at the impact of seismic testing on fisheries in state and Commonwealth zones.
Testing by the gas and oil industry has previously been blamed for causing mass scallop deaths in the Bass Strait in 2010 as well as plankton depletion and stunted growth of rock lobsters.
Tasmanian Seafood Industry Council chief executive Julian Harrington in a submission to the inquiry said in light of insufficient scientific evidence over the impact of seismic testing, there should be a more precautionary approach to its approval.
He said oil and gas proponents cherry-picked scientific evidence on seismic testing to suit their ends.
Mr Harrington said the consultation process for approvals was inadequate, and if the decision reached was wrong, it was the fishing industry and broader community that suffered the consequences.
"The oil and gas industry, [National Offshore Petroleum Safety and Environmental Management Authority] and the Australian Government must acknowledge that seismic is having a far greater impact on the marine environment than ever previously accepted," he said.
Mr Harrington said the implementation of an oil and gas community fund could be used to counter any negative impacts from seismic testing.
National Offshore Petroleum Safety and Environmental Management Authority chief executive Stuart Smith said the potential for seismic survey activity to impact commercial fisheries, invertebrates and protected species like whales was of concern.
"NOPSEMA also ensures that the latest published peer reviewed science is applied in an appropriate and relevant way during assessment of environment plans and during regulatory decision making," he said.