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A new code of conditions for racing greyhounds will be boosted with $2 million when it comes into effect on the January 1.

A new code of conditions for racing greyhounds in Victoria will be boosted by a $2 million fund when it comes into effect on the January 1, the government announced on Sunday.

Racing Minister Martin Pakula announced the funding of $1 million. Greyhound Racing Victoria has matched this grant, taking the total introduction package to $2 million.

This financial aid is aimed to provide practical support to help participants comply with the Code of Practice for the Keeping of Racing Greyhounds.

"Participants have known this code was coming for 18 months and these extra education and compliance programs will make sure that everyone is aware of the rules," Racing Minister Martin Pakula said.

This new code sets minimum standards for the operation of greyhound establishments to ensure that the physical and behavioural needs of racing animals are met.

"This very important initiative will put animal welfare front and centre and ensure a level playing field for all participants," Greyhound Racing Victoria chair Peita Duncan said.

Earlier in November, three greyhound trainers were suspended for baiting their dogs with live possums, throwing the sport's Victorian racing industry into another crisis.

The marsupials were reportedly used to spark the dogs' desire to chase, initiating a new live-baiting scandal.

The industry body has invested more than $30 million on measures to promote integrity since 2015.

Since November 2014, the Victorian government claims to have invested $11.5 million in grants to the greyhound racing industry.