The Queensland racing industry is set to receive an additional $31 million in prize money from next year.

With the Palaszczuk Government poised to return 80% of betting taxes back to the industry from next month, Racing Queensland has unveiled its latest Investment Growth Plan, which will commence from February 1, 2023.

A further $6 million will be allocated to increase club-related payments, with $4 million being allocated to asset management and $2 million to club operational funding.

Over the past two years, RQ has provided $35 million in additional prize money, with next year's annualised increase set to take the tally to $66 million since the beginning of 2021.

Racing Minister Grace Grace said the funding increase was made possible thanks to the up-coming Betting Tax changes.

“From today, 80 per cent of revenue generated by the betting tax will go straight back to the industry, up from 35 per cent, creating greater funding certainty for country racing in Queensland,” Grace said.

“The change in the funding model has allowed Racing Queensland to bolster prize money, and I'm pleased to announce there will be a $31 million increase in prize money across all codes next year.

“That's an extra $17 million for thoroughbreds, $9 million for greyhounds and almost $5 million for harness racing.”

In terms of the boost for the thoroughbred industry, there is set to be $9.2 million in increased prize money for metropolitan, provincial and country TAB meetings.

Whilst $1.5 million will go towards black-type prize money increases for non-Group 1 races.

Picnic meetings are not forgotten in the boost either, with $1.7 million in non-TAB prize money increases boosting race funds from $8,500 to $10,000.