Member for Northern Tablelands Adam Marshall announced the state government would fund a new Puppy Factory Taskforce within the RSPCA, on Wednesday.

Mr Marshall said puppy factories were both cruel and illegal in NSW and would stand no chance against the new organisation.

The taskforce will consist of four new inspectors, who will identify and tackle breeders who fail to comply with animal welfare legislation.

They will also work with NSW Police and intelligence officers to root out "these grubs who are profiting from the mistreatment of animals", Mr Marshall said.

New funding will see more frequent and rapid inspections at facilities found to violate animal welfare laws.

"My message today is clear - to the cowboy breeders doing the wrong thing, this is your last warning, comply with the law or pack up and move on - you will be caught and have the full force of the law thrown at you," he said.

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Under current rules, any breeder found to be doing the wrong thing can have their animals seized, be fined up to $22,000 and jailed for as long as two years per offence.

RSPCA NSW CEO Steve Coleman said the announcement was a "win for animal welfare", but also a victory for breeders doing the right thing.

"Every day we face the dark side of the animal breeding industry, where profits are put above an animal's welfare. Countless animals come through our doors in appalling condition and suffering from health and behavioural problems."

"This funding will help us double down on cruelty of this nature. The message is loud and clear; it will not be tolerated."

Animal cruelty in the breeding industry has long been a passion issue for Mr Marshall, who chaired a high-profile parliamentary inquiry into animal cruelty in 2015.