THE Australian Horse Industry Council hopes to have identified all possible options for gathering a horse levy by the end of the month.

The council has until December 1 to come up with a levy plan suitable to the Federal Government that would see the horse industry come under the Emergency Animal Disease Response Agreement.

Failure to do so is likely to see authorities permit the voluntary use of equine influenza vaccinations - a move backed by Thoroughbred interests who believe racing would not be hit as hard in the event of future flu incursions if racehorses could be inoculated against the disease.

AHIC president Roger Lavelle said his organisation hoped to have the levy-funding options defined by June 30, after which there would be consultation across the industry.

The council would then seek letters of support from all relevant organisations, as well as identifying any pockets of dissent or disagreement.

It hoped to prepare its final draft submission by mid-October and obtain final sign-off by mid-November before submitting it to the Government.

Dr Lavelle said signing up to EADRA would see 22 equine diseases covered.

The agreement involved a cost-sharing arrangement between Government and industry, with the proportion of the share depending on the nature of the disease in its impact on human health, the socio-economic consequences, the effect on horses' health and production losses.

They ranged from the likes of rabies, where the Government would meet 100 per cent of costs, to hendra virus (where the Government would meet 80 per cent of costs) to African horse sickness (50 per cent or costs) and equine influenza (20 per cent of costs).

"Before the Government will sign EADRA, they need to be convinced that any costs incurred in managing the disease outbreak can be recouped," Dr Lavelle said.

"This is done through a levy mechanism.

"The levy will initially be set at zero dollars and remain so until a disease occurs.

"Once the disease has been eradicated and proof of freedom established, the costs are tallied.

"Once the industry's share of the costs are known a levy figure is established and the levy collection process put into play.

"An industry is usually given 10 years in which to pay their share of costs.

"The interest charged and the audit costs have to come out of the levy monies.

"If it is a relatively small amount to repay the industry may wish to pay over a shorter period than 10 years."