CIGARETTES will be sold in plain packages from January 2012 as Kevin Rudd introduces the world's most draconian anti-smoking laws in a move likely to spark a legal challenge from big multi-national tobacco companies.

The new laws will prohibit the use of tobacco industry logos, colours, brand imagery or promotional text of tobacco product packaging.

Brand names and product names will have to be displayed in a standard colour, font style and position under the new laws, The Australian reports.

The government is planning the measure to cut the attractiveness of the packaging to young people to further cut smoking rates.

The measure has been strongly opposed by tobacco companies who have forshadowed legal action, arguing plain packaging breaches trademark law and amounts to confiscation of property.

The move is part of a Rudd Government plan to cut smoking rates to 10 per cent or less of the adult population by 2018.