Racing Victoria will be given greater powers over participants in thoroughbred racing while the state's racing integrity commissioner will be able to compel witnesses to appear before his inquiries.
Racing Victoria will have the power to apply the rules of racing to non-licensed persons - instead of only licensed industry participants - under legislation introduced into the Victorian parliament this week.
The legislation will also boost the power of the state's racing integrity commissioner, giving him the ability to compel witnesses to appear before inquiries and hand over evidence.
Victorian Premier and Racing Minister Denis Napthine said the amendments to the racing act would make it clear that Racing Victoria has the power to apply the rules of racing to non-licensed persons, similar to the powers of other Victorian racing controlling bodies.
"All people participating in racing, whether licensed or non-licensed, will now need to adhere to rules of racing or otherwise be subject to penalties such as exclusion from racing," Dr Napthine said in a statement on Tuesday.
Racing Victoria had been seeking the authority to act over unlicensed persons.
Racing stewards currently can only question people who are licensed or registered, such as jockeys, trainers, stablehands, bookmakers and owners.
Sydney punter Eddie Hayson was warned off by Racing NSW for failing to disclose the names of people who told him all was not well with More Joyous when he appeared at the high-profile inquiry.
Dr Napthine said the reforms would significantly strengthen the racing integrity commissioner's powers.
He said the commissioner can now require racing controlling bodies, registered clubs and licensed persons in the racing industry to co-operate with investigations and inquiries.
Commissioner Sal Perna has called for the investigative powers of those policing horse racing to be increased, after conducting inquiries into race fixing in the state and into jockey Damien Oliver betting on a rival horse.
Mr Perna said the Oliver investigation was difficult, protracted and frustrating because of legal complications and his lack of adequate powers.
Some key participants, including Oliver, did not accept his request to give interviews.
Mr Perna in January found no evidence of systemic corruption in the industry.