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Victorian racing participants will now contribute two per cent of all prize money to equine welfare initiatives and programs.

The start of the new year will herald the doubling of the percentage taken from prize money to be allocated to equine welfare initiatives in Victoria.

From Wednesday, two per cent of prize money distributed by Racing Victoria will be directed at those initiatives and programs of equine welfare, first introduced in 2017 with a one per cent allocation.

RV launched a three-year strategic equine welfare plan in July with the aim to ensure the welfare of racehorses before, during and post racing.

In October RV announced an accelerated $25 million equine welfare action plan following an ABC 7.30 report on the fate of some retired race horses.

"We've expanded our equine welfare task force to deliver the action plan and commenced audits of racing stables and horse sales to validate retirement data and ensure we support the right programs that benefit retired racehorses in need," RV integrity boss Jamie Stier said.

The prize money contribution has funded a broad range of world leading equine health and injury research, welfare-related veterinary services and the Off The Track program.

The increase will assist the delivery of new programs and initiatives to support retired racehorses, including a foster program and extended re-homing network.

The two per cent contribution to equine welfare sits alongside an existing one per cent contribution from prize money to jockey welfare.