Parliament has passed two bills that would make Australia the first country to introduce plain cigarette packaging in place of company branding.

The plain packaging bill and a related measure amend trademark law to let tobacco companies use their trademarks in other places than on cigarette packs. The bills passed unopposed in the lower house and will now move to the Senate.

All tobacco products will now have to be sold in plain olive green packaging starting next July 1. The proposed legislation which is aimed at reducing smoking rates, will have all cigarette packets sold without the company brand and will have graphic health warnings such as black diseased gums and children in hospitals.

Health Minister Nicola Roxon said the step was a courageous one.

"This is the first very courageous step that our parliament has taken to introduce plain packaging," said Roxon.

"We're going to be the first country around the world to introduce it, and Jan. 1 is the start date and it looks like the legislation will be well and truly passed by then."

The plans have been met with opposition from tobacco companies who have questioned the evidence linking plain packaging to a reduction in smoking rates. The companies have also expressed concern about the rush of counterfeit products that will arise in the wake of the bills passing,

Roxon has remained unapologetic about the news.

"There isn't any safe amount of tobacco that you can smoke. It will kill you eventually, and we obviously want to make sure that that message is heard loud and clear," she said.

Australian Medical Association President Steve Hambleton also expressed support for the bills and urged other senators to back it.

"This legislation will save lives," he said. "And we have to send a message to Big Tobacco that people's lives are more important than their profits."

Opposition members of parliament had backed the bills but individual members still had their doubts about the bills.

"The suggestion that the coalition is soft on tobacco companies is just plain nonsense," said Andrew Southcott, opposition parliamentary secretary on health. "I believe that plain packaging will have an impact on the smoking rates within Australia. I believe it will reduce the number of people who take up smoking."

Although Southcott supported the bill he questioned the need to include a clause that would allow the health minister to draft regulations to override the actual legislation.

Other members of the Liberal party were quick to criticize the bill.

"I've got news for the minister for health and the government - life kills people. It's a dangerous activity, life. There are no laws we can pass to prevent that," Alex Hawke said.

If the bills pass, Australia will be the first country in the world to have legislation on plain packaging. New Zealand, Canada and Britain have all considered similar laws.