​The levy will see the Department of Agriculture match funds raised by the thoroughbred industry in a dollar for dollar scheme for research projects that will be spent safeguarding and improving equine health and production.

Federal Agriculture Minister Barnaby Joyce said the government was delivering on its election commitment to support the industry’s request to establish the levy.

“The levy is part of a $1.2 million election commitment delivered in the 2017-18 Budget which will fund research to develop better disease control, stronger foals and horse welfare measures,” Minister Joyce said.

“Stallion owners will pay a levy of $10 per mare covered per season and mare owners will pay a levy of $10 per mare returned per season.”

The government will match the industry’s contributions up to $400,000 per year, with the levy expected to generate a total of $2.4 million towards research and development over three years.

An advisory board established by the Rural Industries Research and Development Corporation in Wagga will manage and administer the funds.

Australia’s 660 stud farms form the second largest thoroughbred breeding industry in the world supplying horses to both domestic and overseas markets.

The industry employs 65,000 people, particularly in rural and regional areas and is worth $5 billion per annum to the Australian economy.

“The levy will fund projects for the benefit of the whole industry, such as those focused on reducing injury, the incidence and impact of diseases and parasites and improved foal development and breeding outcomes,” Minister Joyce said.

"It could also be used to fund research to improve the safety of industry participants and the welfare of horses; and enhance the environmental sustainability of the industry.” 

The levy is backed by the peak industry body for Australia’s thoroughbred breeding industry, Thoroughbred Breeders Australia which represents 3,780 individual breeders and industry participants.