Greyhound racing will be banned in Canberra in just over 12 months, despite an independent report finding no evidence of live baiting in the ACT.

The ACT Government today made the final decision to make greyhound racing illegal, with the law coming into effect at the end of next financial year.

The ban was announced after an independent report highlighted concerns over animal welfare, but found no evidence of live baiting in the ACT.

The report, by former Health Services Commissioner Mary Durkin, found out of more than 27,000 animals that raced in Canberra, 26 dogs had been euthanased due to injury at the racetrack in the five years from 2012 to 2016.

Another 302 dogs received minor to major injuries.

The ACT Government's decision came after an inquiry into the New South Wales industry, sparked by a Four Corners investigation, confirmed the "barbaric" use of live baiting and the unnecessary death of tens of thousands of healthy dogs.

Attorney-General Gordon Ramsay said it was impossible to divorce the ACT and NSW industries, with the large majority dogs raced in Canberra from the neighbouring state.

"We can't turn a blind eye to the demonstrated cruelty and the behaviour that has been occurring and documented in NSW," he said.

"The risk is not worth taking."

The Government pledged to end taxpayer funding to the industry at last year's election, despite the NSW Government overturning a ban on the sport.

NSW decided to instead invest $41 million to implement a range of reforms to improve animal welfare.

"That's something the ACT Government is not willing to do," Mr Ramsay said.

Sport at mercy of 'backroom deal'

Canberra Greyhound Racing Club's Kel Watt said the move was a direct result of the power-sharing arrangement between Chief Minister Andrew Barr and Greens leader Shane Rattenbury.

The Liberals' Mark Parton says the decision targets an "unblemished" sport in the ACT. ( ABC Radio Canberra: Clarissa Thorpe )

"Animal welfare is being put up as the reason for this policy, but the Mary Durkin inquiry, and even the Minister himself has acknowledged that there are no animal welfare issues," he said.

"Animal welfare will not change at all because the animals in the ACT will continue to race in NSW.

"This is simply about a backroom deal to make sure that Shane Rattenbury and Andrew Barr can sit on the plush government benches."

Liberals spokesman Mark Parton said the decision unfairly targeted the greyhound industry.

"It's not about animal welfare at all, it's about them remaining in power," he said.

"This is a legitimate sport - this sport has had an unblemished welfare record in the ACT and I think it's a disgraceful decision.

"Will the Greens want to have an animal-free Canberra Show by 2020? Who knows?"

More than 300 racing dogs owned by Canberrans

The report found an end date of June 30 next year was achievable because the local industry was small.

Just over 300 dogs are owned by ACT residents and the ban will directly impact 70 local owners and trainers.

It is also expected to impact 26 jobs.

Under the laws, breeding, owning and training greyhounds will still be allowed in the ACT, with the Government saying that would not be banned due to "a number of legal matters".

The Government also promised a $1 million package to reskill those workers and train and rehome any greyhounds impacted.

A taskforce will work with the industry to determine how the funding should be spent.

Despite not thoroughly examining the Canberra Greyhound Racing Club's compliance with the law, the report said some of the club's rules were "problematic".

It recommended a veterinarian attend all trial meetings, in addition to racing meets, until the local industry ends.