A judicial inquiry would investigate Australia's concentrated media market and whether existing regulations are fit-for-purpose under a recommendation spearheaded by the Greens.
But Liberal senator Andrew Bragg and his Nationals colleague Sam McMahon have rubbished the proposal as a bad idea and waste of money.
Senators from across the political divide scrutinised media diversity in Australia and the consequences of concentrated ownership.
The Greens-chaired committee recommended a judicial inquiry with the powers of a royal commission to look at the issue and consider the creation of single and independent media regulator.
"It is clear that the current regulatory framework is not fit-for-purpose and significant changes are required," the majority report said on Thursday.
"The concentration of media ownership is inherently corrosive of democratic practice because it places control over the sources of information and opinion in far too few hands."
The Senate inquiry was sparked by former prime minister Kevin Rudd's petition for a royal commission into Rupert Murdoch's News Corporation.
"A judicial inquiry would have the capacity for a more comprehensive investigation, including compelling witnesses to give evidence, than can be undertaken by a parliamentary committee," the Senate committee said.
It called on the Morrison government to commit to long-term and adequate funding of the Australian Associated Press newswire.
It also wanted sustainable and adequate funding for the ABC and SBS.
Senator Bragg, who last month pushed for a parliamentary probe into the ABC, did not think the government should interfere with private media organisations.
"None of the recommendations are worthy of consideration, but this is not to say that we cannot improve the regulatory landscape," he said in his dissenting report.
Senator McMahon said a judicial inquiry into media ownership would set an unhealthy precedent and amount to a waste of taxpayer funds.
"Regulatory reform can be completed without such an expensive vehicle that will turn into a political witch hunt aimed at stifling a free press," she said.
Australian Associated Press
