Smoking bans may be extended to building entrances, sporting events, swimming pools, bus stops and playgrounds as the ACT government seeks community feedback.
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The potential changes, detailed in a discussion paper on Thursday, would reduce exposure to second hand smoke and aim to improve public health.
Minister for Health Simon Corbell said the restrictions would apply in areas popular with children and young families.
"When in close proximity to someone who is smoking, bystanders can be exposed to harmful levels of second-hand smoke," he said.
"Second-hand smoke can be particularly harmful to children and increase the risk of sudden infant death syndrome, middle ear infections, upper and lower respiratory infections, asthma, chronic cough and developmental delays".
Smoking is currently banned in all public places, outdoor eating and drinking areas, underage music festivals and cars when children are present.
According to the discussion paper, the ACT has fewer smoke free areas than many other jurisdictions, which have restrictions at bus stops and playgrounds.
"Both NSW and Tasmania have banned smoking at organised sporting events and in Victoria smoking is banned at organised underage sporting events," the paper said
The adult smoking rate in Canberra is the lowest in Australia at 9.9 per cent.
Mr Corbell said the restrictions could also reduce exposure to negative role models and prevent children from starting to smoke.
"The consultation focuses on smoke-free areas at outdoor places where people congregate in close proximity, or can't move away from someone who is smoking without losing access to a service or activity," he said.
"It is recognised that childhood and adolescence are critical periods for preventing the uptake of smoking and in which the health impacts of exposure to tobacco smoke are greater."
The consultation period will close on December 17.
The proposed changes come two weeks after the ACT government moved to ban the sale of electronic cigarettes to minors and ensure they cannot be used in smoke-free areas across the territory.
Advertising of e-cigarettes – otherwise known as vapours – would be heavily restricted in public places and vending machine sales would also be banned.
Promotions and customer reward schemes would also be banned along with product giveaways and sponsorship deals.
The proposed legislation comes after a lengthy public consultation that resulted in 242 submissions from individuals, business owners and public health organisations.
Mr Corbell said the proposed restrictions were designed to protect public health without restricting access to non-nicotine e-cigarettes by smokers wanting to quit.
"The government is aware that a number of Canberrans are using e-cigarettes to support their quit attempts," he said.
"However, nicotine-containing e-cigarettes have not been approved by the Therapeutic Goods Administration as a quit smoking aid and it will remain illegal to sell or possess e-cigarettes that contain nicotine without a licence."
