A state taskforce led by Animal Justice Party MP Andy Meddick made 17 recommendations to the government, which could lead to a mandatory rehoming policy for suitable cats and dogs used in research and teaching.

A review of regulations, specifically focused on a retirement age for those animals, was also endorsed.

The taskforce also called for protections to minimise the use of euthanasia for animals with treatable or manageable health conditions.

The recommendations are designed to establish consistent standards of care for rehoming, Melbourne-based animal rights group the Australian Animal Protection Society said.

That group also wants to see regulations go further.

"I would love to see people have a licence to own a pet," the society's general manager Megan Seccull said.

"If you have to go through some sort of education program to understand exactly what's involved in having a pet, that will then cut out impulse buying."

RSPCA Victoria made submissions to the inquiry, leading to a number of recommendations in the report.

"As a socially conscious shelter, RSPCA Victoria believes transparency, including animal fate data reporting, collaboration and continuous improvement of standards are vital to ensure all animals are treated humanely," chief executive Liz Walker said.

"RSPCA Victoria supports the regulation of rehoming groups to help ensure all animal care organisations are transparent and adhere to the same standards."

The Lost Dogs Home, which rehomed 4758 pets last year, also welcomed the support.

There is still much to do with the help of donors, supported and dedicated staff and volunteers, a spokeswoman said.

Last month's budget included $18.6 million for animal welfare initiatives.

Australian Associated Press