Tasmanian greyhound racing participants will receive compensation for the industry being shut down by June 2029, the state Liberal government announced on Sunday.
Premier Jeremy Rockliff confirmed a bill enabling the ban would be amended to include compensation after it passed the lower house in December.
Details of the compensation framework will feature in the legislation and a funding package will be outlined in the state budget.
"As we progress the phase out of greyhound racing in Tasmania by June 2029, we will ensure participant and animal welfare are the priority," Mr Rockliff said.
The Liberals made several policy concessions to a largely progressive cross bench to retain power after the July state election, including the greyhound racing ban.
Compensation, consultation and oversight were key issues raised by independent upper house MPs when the bill was referred to a committee for review.
Greens MP Cassy O'Connor hoped the compensation guarantee would be enough to win their support when the bill returns for debate.
"This industry has lost its social licence," the party's animal rights spokesperson told reporters.
"Its race is run; it's cruel and exploitative.
"Dogs are still dying - we've had almost 40 injuries on and off track since the 1st of January this year."
Labor remains opposed to the ban, with party leader Dean Winter declaring the government amendment exposed serious flaws in the original legislation.
"The greyhound community invested based on Premier Jeremy Rockliff's assurances of support," he said.
"If the shocking shutdown of the industry is approved by parliament, it will cost taxpayers tens of millions of dollars."
Tasmania would be the first Australian state to outlaw greyhound racing after the ACT banned it in 2018.
NSW moved to outlaw the sport in 2016 before a sensational backflip from then NSW Liberal premier Mike Baird.
In December, a long-running NSW inquiry into the troubled industry found not a single track in the state was compliant with minimum standards set in 2020.
Acting industry regulator Lea Drake recommended the entire industry be shut down within weeks if new standards were not set and publicised.
NSW Racing Minister David Harris instead gave greyhound officials until June 30 to comply with a raft of expectations to boost greyhound welfare.
Greyhound Racing NSW has since confirmed Muswellbrook and Broken Hill racetracks will cease operation on June 30 as the industry "cannot afford" to upgrade every track to minimum standards.
It comes after NSW's famed Dapto Dogs racing venue held its final race meet in September after almost 90 years.
A report from NSW's Greyhound Welfare & Integrity Commission shows 262 animals were euthanised in the six months to the end of 2025.
Of the 126 deaths reported in the most recent quarter, 56 were attributed to accident or injury.
South Australia's greyhound racing industry was given two years to clean up its act or face closure, while the Victorian government has shown strident support for the sector.
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