Smokers are likely to be forced to buy their cigarettes in logo-free dull olive green packets, featuring pictures of black, diseased gums, blinded eyes and children in hospital, from next year.

The Government has released graphic designs of the packaging cigarette companies will be required to use by the middle of next year after the new laws come into force.

Health Minister Nicola Roxon says attractive logos and brand imagery will be barred, replaced with the brand and product name in a standard colour, standard position and standard font size and style.

The packets will be largely olive green in colour after research indicated olive green was the least attractive colour, particularly for young people.

Health warnings will be updated and increased from 30 per cent to 75 per cent of the front of the pack, as well as 90 per cent of the back.

Ms Roxon says the plain packaging should decrease smoking-related deaths.

"The chilling facts are that smoking kills 15,000 Australians a year and costs our society $31.5 billion each year," Ms Roxon said.

"This plain packaging legislation sends a clear message that the glamour is gone - cigarette packs will now only show the death and disease that can come from smoking.

"The new packs have been designed to have the lowest appeal to smokers and to make clear the terrible effects that smoking can have on your health."

After 60 days of public comment, the legislation will be introduced during the winter sitting of Parliament.

The president of the Australian Council on Smoking and Health, Professor Mike Daube, disputes suggestions from the tobacco industry and retailers that the new packaging will not reduce smoking.

"There is a great deal of evidence showing that glossy packs are appealing, they appeal especially to kids," he said.

"We know if you give kids cigarettes from a plain pack or a glossy pack, they think the ones from a glossy pack taste better even though they're identical.

"The retailers are trying to defend the product. Bear in mind this product kills one in two regular users - it's already killed close to a million Australians since we've known about the dangers of smoking.

"Australia is now leading the world in action to reduce smoking. That means we're now saving lives, this measure is going to save lives, and we know it's going to work.

"The way the tobacco industry is opposing it so fiercely is the best evidence we have that it is going to have an impact."

'Waste of money'

British American Tobacco Australia (BATA) says it is disappointed the Government has pushed ahead with plain packaging despite the risk it will end up costing taxpayers billions in legal fees even though there is no proof it will work.

BATA said in a statement several countries have considered plain packaging but it has never been put in place due to concerns over the legalities of such a move and the potential for a boom in black market tobacco.

Spokesman Scott McIntyre said the Government's proposal may infringe international trademark and intellectual property laws.

"What company would stand for having its brands, which are worth billions, taken away from them?" Mr McIntyre said.

"A large brewing company or fast food chain certainly wouldn't, and we're no different.

"The Government could end up wasting millions of taxpayers' dollars in legal fees trying to defend their decision, let alone the potential to pay billions to the tobacco industry for taking away our intellectual property.

"Plain packaging will also make it easier to sell counterfeit cigarettes because fakes will be harder to spot.

"It provides a blueprint for criminals to make illegal cigarettes, as they now have the exact specifications to produce and import them into the country.

"Last year, the Government lost $1.1 billion to illegal tobacco sales in excise and that figure could skyrocket under the plan for plain packaging. There's already been a 150 per cent growth in tobacco black market since 2007."

Australia's peak industry body has criticised the legislation, saying it will impact the rights of businesses to use their trademarks and make sure product standards are met.

The AI group's Innes Wilcox says it may set a precedent where plain packaging could be forced on to other products - such as alcohol.

"Apart from the direct impact on the tobacco industry, the proposed guidelines also have major implications for the packaging industry such as the potential for a proliferation of counterfeit packaging," Mr Wilcox said.

The Opposition will not say whether it backs the proposal for plain cigarette packaging.

Health spokesman Peter Dutton says he will analyse the draft legislation but has not seen proof it will cut smoking rates.

"The Government says they hope this will work and they won't be any stronger than that," he said.

"We just want to see the evidence from the Government, any advice they've received.

"I think that's [the] most important thing and I think most Australians will say that's a fair thing to ask."