Victoria's Government is pushing ahead with plans to become the first Australian state to ban the sale of puppies and kittens from pet shops unless they are from a rescue shelter.

Key points: Victoria pushing ahead with plan to crack down on intensive puppy and kitten farms

Victoria pushing ahead with plan to crack down on intensive puppy and kitten farms Under plan, pet shops could only sell puppies and kittens from rescue shelters

Under plan, pet shops could only sell puppies and kittens from rescue shelters Breeders, pet shops concerned plan could give rise to online animal black market

Victoria's Agriculture Minister Jaala Pulford said she hoped to introduce the legislation by the end of the year.

The measures would also restrict breeding facilities to a maximum of 10 dogs by 2020.

The first tranche of reforms introduced last year was widely welcomed as long overdue.

They include $5 million for a special RSPCA investigations unit, stricter requirements for pre-mating vet checks, limiting the number of litters per breeding dog to five, and detailed record keeping of the origin of every puppy and kitten bought and sold.

But is the next move to effectively shut down the large-scale puppy breeding industry going to work?

We offer a transparent experience: breeder

Matt Hams, owner of one of Victoria's largest breeding establishments, claimed reputable breeders who complied with animal welfare standards were being unfairly targeted in a policy driven by emotion.

His third generation business, Banksia Park Puppies, specialises in crossbreeds like cavoodles and spoodles, with a waiting list of between 100 and 150 customers.

Matt Hams says his breeding business is open and transparent. ( ABC News: Cathy Jacobs )

Customers are encouraged to inspect the activity yards and heated birthing wards, meet the puppy's parents, and see for themselves how the 150 dogs are cared for and socialised.

"People have learnt a lot about online purchasing and the risks of backyard breeding and not knowing where the parents came from, or not meeting the parents at all," Mr Hams said.

"As a large breeder, we offer a completely transparent experience.

"There is no animal welfare evidence that supports the fact that 10 [breeding dogs] is a suitable number or that better animal welfare outcomes will be the result of smaller places."

He said 25 staff, including a young woman with a disability, would likely lose their jobs.

"One of the worst possible things we can ever be accused of is cruelty. So many years of bad press has made people believe it's impossible to do this well," he said.

We are the solution, not the problem: pet shop owner

Upmarket Pets owner Greg Kirby sells about 2,000 puppies a year.

He said he could not keep up with demand for breeds like French bulldogs, pugs and cavoodles.

"We breed many types of livestock for profit, but does that mean it's wrong?" he said.

"One of the best things the State Government has done is bring in the breeding regulations and give money to the RSPCA to go out and police this," he said.

The policy could fuel an online black market, pet shop owner Greg Kirby says. ( ABC News: Cathy Jacobs )

Mr Kirby said he was proud of his standards and customer relationships and felt vilified by animals rights activists.

"Every dog and cat that we purchase to sell, we give those details to the RSPCA and the council. I don't put animals down. I've never had an animal that I couldn't rehome in 18 years and I can proudly say that," he said.

About 15 of his staff would lose their jobs under the proposed ban, he added.

Mr Kirby said not all rescue dogs were suitable for modern families and claimed the Government's policy would fuel an online black market.

"We are not the problem, we are the solution. We are the most regulated out of all codes and you are now going to give that transparency away for the internet," he said.

It's not keeping me awake at night: minister

Agriculture Minister Jaala Pulford said there was strong backing for her policy, which was based on detailed discussions with animal welfare organisations like the RSPCA and Oscars Law.

Agriculture Minister Jaala Pulford says the policy is not keeping her awake at night. ( ABC News: Cathy Jacobs )

"I can understand that there are some people who are making good money out of the existing arrangements who don't like this change, but we announced this policy the best part of two years ago," she said.

"People have had a lot of time to think about the change this is going to mean for their business," she said.

"It's not keeping me awake at night."

Ms Pulford said the laws would affect fewer than 90 of Victoria's 10,000 breeders.

"It's a small number of businesses that will need to reflect whether their commitment to animal welfare is something that they would like to do through a rescue organisation. And we'd like to see that," she said.

"To suggest that there is going to be a dramatic change in supply is just inaccurate."

It may stop impulse buying: RSPCA

As recently as June, the RSPCA carried out one of its largest ever rescues of 119 small dogs from two private properties near Longwood in Northern Victoria.

RSPCA Victoria CEO Liz Walker said out of 48 investigations so far, 10 were expected to face prosecution, but more complaints were coming in regularly.

Banning pet shop sales — and encouraging a new synergy with rescue organisations — would shut down one of the pathways used by unethical breeders, she said.

"It may help us to stop that impulse buy from people who are trying to save these animals," she said.

"It's great for the community to understand there's a different way of thinking about acquiring an animal. It doesn't have to be a puppy. It doesn't have to be a kitten."

She acknowledged that rescue dogs were not suitable for everyone, and the RSPCA was developing more efficient desexing services.

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