Australia is just one of a handful of countries that have successfully eradicated the disease.

Mr Burke said the last remaining emergency requirement – that people notify authorities of their intention to move horses or hold an event – could now be lifted.

The declaration will also be important for on-going negotiations with New Zealand, which still requires horses entering from Australia to remain in quarantine for five weeks.

To satisfy World Animal Health Organization requirements, Australia will maintain an effective surveillance system for equine influenza until the end of 2008.

"We will never know the full cost of the disease outbreak, but this declaration is a major milestone in the road to recovery," Mr Burke said.

"Australia adopted tough measures to try to eradicate the disease, including a complete lock-down on horse movements in NSW and Queensland.

"It was devastating for everyone affected, including horse owners, jockeys, farriers, caterers and fashion outlets, but people realised the scale of the emergency required a radical response."

But Mr Burke says Australia is now better prepared to handle any future emergencies.

Initial changes were made to Australia's horse quarantine arrangements after the August 2007 incident and the Government this month accepted all 38 recommendations from the Callinan Inquiry report on the outbreak.

A new animal quarantine branch has been established in the Department, led by a senior executive now primarily responsible and accountable for the importation of horses into Australia.

A national equine influenza vaccine bank has also been established and arrangements will be made to allow the rapid deployment of a vaccine in the event of any future emergency.

Current legal approvals to use the vaccine to control the disease were only given in the context of an emergency, so they lapse with today's declaration that the emergency is over.

Applications for the ongoing use of a vaccine would have to follow the standard scientific process, including approval by the independent regulator the Australian Pesticides and Veterinary Medicines Authority and possibly a number of other bodies.

Horse industry groups are meeting later this year to discuss how to deal with any possible future horse flu outbreak.