Increased prizemoney, including a minimum of $20,000 per TAB race in country areas, and the abolition of acceptance fees are among the key initiatives NSW racing authorities hope to introduce across the next three years.

But the Racing NSW Strategic Plan is entirely dependant on the state government agreeing to tax parity with the rest of the country.

Racing NSW chief executive Peter V'landys and chairman John Messara say there is no Plan B and without an injection of funds, the state's racing will suffer as the numbers of owners and horses decline.

"Our research tells us there is no financial incentive for owners to stay in the industry," V'landys said.

"At the moment the owners as a group are losing $200 million a year.

"We've got to do something about that and broaden the distribution to as many owners as we can.

"The statistics we are doing now show that when horses get to five years old they are retired or they are sold to Asia.

"We need to keep owners in the business and tax parity would do that.

"The only Plan B is to keep doing what we are doing now."

The estimated collective cost to owners per year is $347 million of which they receive $147 million in prizemoney returns, leaving the $200 million deficit.

Racing derives its income from the TAB with the NSW industry getting $4.70 per $100 wagered on the totalizator and the government $3.22 compared to Victorian figures of $7.90 and $1.28.

On fixed odds betting the comparisons are $4 for NSW, $7.04 for Victoria with the government levies $1.56 and $0.63 respectively.

Based on the reduction of the levy, Racing NSW expects to get an additional $72 million per year to fund prizemoney increases and free racing with the exception of the Golden Slipper and Golden Rose which are futurity races.

"Metropolitan races on a Saturday would be worth $100,000 and all Listed races would go up to $150,000." Messara said.

"We would also increase prizemoney across the board and at the top level."

The cost of funding the autumn carnival and The Championships would be $15.225 million while the increased prizemoney for stakes races would cost $8.925 million.

The plan also provides for $16 million to be invested in country prizemoney.

Other initiatives include a $2 million investment in traineeships in high youth unemployment areas and a $2 million industry marketing program.

The elimination of nomination and acceptance fees would cost $4 million.

Submissions for changes to the tax structure have been sent to the Premier Mike Baird and his advisors for consideration.