CANBERRA - Children were among seven people injured when a riderless race horse jumped into the crowd, during the Grand Annual Steeplechase at Warrnambool, Victoria of Australia on Thursday.

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Race horse, Banna Strand lost its rider in the first half of the race when he failed to take a jump. It then jumped the two-meter high brush fence into the race spectators at the back of the course.

The horse then continued off the course, running beside the boundary until he leaped a high brush safety fence into the crowd before he kept running.

A two-year-old girl has a broken collarbone and an 80-year-old woman and a 12-year-old girl have suspected fractures. Four others suffered bruising.

Paramedics are treating people at the scene with two people transported to hospital.

According to Warrnambool Racing Club chief executive John Green, the design of the track means spectators are very close.

Racing Victoria CEO Rob Hines said safety at the course would now have to be urgently reviewed.

"You take the precautions, you would have thought an eight-foot fence on the boundary of the course was sufficient," he told Fox Sports on Thursday.

"We will have to investigate talking to the local council on whether that road should be closed to the general public in future."

Racing Minister Dennis Napthine also said he is working with Racing Victoria on how to improve safety at such events.

Meanwhile, the Victorian state government has also announced an inquiry into spectator safety after Thursday's event.

The Grand Annual Steeplechase has been controversial since two horses died in 2009, prompting the temporary suspension of jumps racing.

Also, another horse crashed through the second-last jump and died during the first race of the carnival on Tuesday.

The Grand Annual is an Australian Thoroughbred steeplechase for horses run at Warrnambool, Victoria during its annual May Racing Carnival.