Doctors, health researchers and a magistrate are welcoming likely new rules designed to halt the over-prescribing of controversial anti-anxiety medication Xanax.

The ABC has been told Xanax is likely to be rescheduled by regulators as early as tomorrow.

The drug is a form of benzodiazepine that is prescribed to combat anxiety, panic attacks and even depression.

But it can also be addictive, and has been blamed for dangerous criminal behaviour and causing deaths.

In the space of a generation, the supply of Xanax, generically known as alprazolam, has exploded by more than 1,400 per cent.

Previous attempts to restrict the use of the popular drug have failed.

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Megan McNeil's sister died suddenly last year. She had six prescribed drugs in her system, including Xanax.

She also had a history of drug addiction.

While the family has already been through a coronial inquest, they are worried the community is being kept in the dark about what can so easily go wrong.

"She just collapsed with no sign of struggle," Ms McNeil said.

"She still had her mobile phone in her hand, just like normal and she's just fallen asleep.

"You wonder, 'do the doctors know and are they educated and are they aware of how dangerous this mix is?'"

Xanax bingeing has 'dangerous' consequences

Sorry, this video has expired Regulators address anxiety drug abuse concerns ( Kerri Ritchie )

The head of Victoria's Drug Court, magistrate Tony Parsons, says he often sees the worst side of Xanax's use in the community.

"It's a drug that has terribly high addictive qualities and it has an effect on the users, which is quite frightening," he said.

"Commonly I see people who have been bingeing on Xanax, the first thing that happens is that they lose their memory.

"Often we'll see defendants who wake up in the police cells, they'll have no memory of what's happened in the preceding three or four days and they'll have no recollection that they're charged with 10 or 20 burglaries.

"So it's a dangerous drug when it's abused. It causes amnesia, it makes people lose almost all of their inhibition, and consequently very dangerous behaviour follows."

Dr Angela Rintoul, who works in preventative medicine at Melbourne's Monash University, is concerned the drug is being prescribed for extended periods.

"Alprazolam is approved only for short-term use, which is two to four weeks in Australia, because there's no evidence of medical benefit beyond short term," she said.

"It's actually a fast-acting benzodiazepine and it has a short half life, which means it's more likely that patients could become dependent on the drug."

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On top of that, she says the drug commands a price on the street.

"They can purchase Xanax on the street for around three tablets for $10. So there is a significant black market for Xanax in Australia," Dr Rintoul said.

Tougher rules on the way

Australian Medical Association president Dr Steve Hambleton says there appears to be an epidemic of Xanax abuse in Australia.

"This is not the first line drug that you'd want and yet people are actually seeking it out," he said.

"It's often not the regular patients of the practice. It's often new people coming in."

He concedes his profession needs to lift its game.

"We do need to make sure we're asking sufficient questions," Dr Hambleton said.

"Practices often need to have a practice policy set up to actually make sure that they minimise the misuse of this drug.

"Of course if any doctor says they have never been fooled by a patient, they really haven't been around long enough."

The ABC understands that after a protracted battle, the Federal Government's Therapeutic Goods Administration is poised to pave the way for Xanax to be rescheduled.

That means doctors will have to think harder before prescribing, and it will be more difficult for anyone to remain on the drug for long periods.

Drug manufacturers and other interested parties will have two weeks to challenge the rescheduling before a final ruling is made by the end of next month.