An independent inquiry will investigate the treatment of retired racehorses and allegations of animal cruelty at abattoirs, the Queensland Premier has announced.

Key points: The inquiry will be overseen by the Queensland Racing Integrity Commission

The inquiry will be overseen by the Queensland Racing Integrity Commission A separate Biosecurity Queensland investigation into one of the abattoirs is also continuing

A separate Biosecurity Queensland investigation into one of the abattoirs is also continuing Premier Annastacia Palaszczuk said the Government would "leave no stone unturned"

The announcement comes after ABC's 7.30 program was given hidden-camera video taken at the Meramist Abattoir in Caboolture, which showed former racehorses being kicked, dragged, shocked and slaughtered.

Premier Annastacia Palaszczuk said the inquiry would be overseen by the Queensland Racing Integrity Commission and be headed by retired judge Terry Martin SC.

"Anyone who viewed the 7.30 program last Thursday night and witnessed the vision of retired racehorses being mistreated at a Queensland abattoir would have been sickened and appalled," she said.

"This was deeply disturbing, horrendous footage and I was just as appalled.

"I know that my Minister of Agriculture along with my Minister for Racing have spoken to many racing industry figures in the last few days and they all have been deeply concerned about the allegations of animal abuse that surfaced."

She said the Government would leave no stone unturned to restore faith in the racing industry and stamp out animal cruelty.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 1 minute 1 second 1 m 1 s Queensland Government launches inquiry into racehorse cruelty

"Animal welfare is everybody's responsibility and my government will not stand for cruelty to animals," she said.

"That's why Queensland has the toughest animal cruelty laws in Australia including penalties of up to seven years jail for the most serious offences.

"But this inquiry will determine what more we can do to make sure that we can have the best possible processes in place to end cruelty to animals in Queensland."

She said a separate Biosecurity Queensland investigation into one of the abattoirs at the centre of the 7.30 story is continuing.

Anti-horse racing protesters outside the Meramist Abattoir at Caboolture on Tuesday. ( ABC News: Dean Caton )

A forum, bringing together stakeholders from the Queensland racing industry, vets, breeders, and trainers, was held on Tuesday.

It was organised before the 7.30 program was aired but Queensland's Racing Minister said he asked for the meeting to be brought forward in light of the allegations.

Animal activists were gathered outside Meramist Abattoir on Tuesday, protesting against the alleged cruelty.

Facing racing's 'uncomfortable reality'

Queensland Racing Integrity Commissioner Ross Barnett told 7.30 race horses ending up in abattoirs was an "inevitable reality", despite the public's misgivings.

"If you do the arithmetic about the number of animals, and the appetite and the market for rehoming, it's inevitable that a number of animals each year are going to end up at an abattoir," Mr Barnett said.

"It's an uncomfortable reality and it's something that people probably don't like to focus on.

"They have a vision of animals living their life out in very pleasurable circumstances. And we'd like that to happen in every case, but sadly, that's not the reality."

Mr Barnett said the "humane euthanasia" of horses can often be the "best outcome" for them.

"Quality of life does not always equate to length of life," he said.

Mr Barnett said discussions were being held about a national traceability scheme to ensure retired horses ended up where the trainer or owner intended, but stressed the horses were no longer their responsibility at that point.

"As far as we're concerned, the only obligation that a licensed participant has under the rules of racing is to advise us when the animal is retired, and once that happens, their obligations are met," he said.

"So it's a challenging area, given the number of horses that enter and exit the industry. Traceability becomes a very significant logistic issue."

Trainer warns against 'knee-jerk reactions'

In Victoria, 2016 Caulfield Cup winning trainer Ciaron Maher urged the industry to refrain from making rushed decisions.

"I just think there shouldn't be any knee-jerk reactions.

"Obviously something [needs] to be done, I just think it needs to be done properly, measured and not people jumping around everywhere."

But Chris Waller, famous for training Winx, called for strong action to ensure the future of the sport.

"If we want the sport to be welcomed by the community for a long time, we have to do everything it takes to make sure that those scenes are never visited again.

"I'll do as much as I can, and the feedback I am getting from the other trainers is that they'll do the same."

He said it was imperative there was more scrutiny over where thoroughbreds were re-homed after their racing careers.

"We've found new homes for horses, but we can't just stop there," he said.

"We've got to make sure ... that the homes we think the horses are going to, are the homes they're going to and that's where they stay."

NSW trainers association calls for levy

The New South Wales trainers association are lobbying for a number of reforms they say could be introduced by Christmas, including a levy on foals and horse sales, and for a Federal Racing Minister to be appointed.

Secretary Glenn Burge said the association supports the current rehoming program in NSW but it needs more funds.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 48 minutes 32 seconds 48 m The dark side of the horse racing industry ( Caro Meldrum-Hanna and Amy Donaldson )

"We're recommending ... every time a foal is registered there's a $500 levy, perhaps on stallion service fees," he told the ABC.

"Equally the Inglis and Magic Millions sales there's an argument you could have a levy — effectively a GST — at that point to capture some extra revenues based on the actual volume of those very large sales.

"A lot of people do very well economically out of this industry so realistically ensuring that it's not just about making money when you're breeding or making money when the horses are racing but you actually do look after the animals as best you can in their non-racing life."

The Inglis Ready 2 Race Sale is on Tuesday at Warwick Farm in Western Sydney.

Inglis managing director Mark Webster supported the idea of a levy, but said only one third of foals born in Australia went through auction houses.

"A broad levy that ensures all horses that are bred contribute to a welfare fund would be good, not just those that go through an auction house," he said.

Its promotional materials state that "graduates of the Inglis Ready 2 Race sale have earned over $49.5 million in recent seasons".