Tough Australian anti-smoking laws to win parliament backing

CANBERRA May 31 (Reuters) - Australia is set to pass the world's toughest anti-smoking laws, forcing big tobacco companies to use plain green cigarette packaging after opposition lawmakers dropped concerns on Tuesday and said they would back the government's plan.

Conservative opposition leader Tony Abbott said his pro-business party would not oppose the laws when they came before parliament later this year, but would attempt some minor and still unspecified changes.

"We will seek to amend the legislation to ensure it really does bring smoking rates down," Abbott said, ending weeks of partyroom indecision on whether to back the minority Labor government amid threats of tobacco industry legal action.

Australia's tobacco market generated total revenues of A$9.98 billion ($10.7 billion) in 2009, up from A$8.3 billion in 2008, although smoking generally has been in decline. Around 22 billion sticks are sold in the country each year.

Health authorities say smoking-related illnesses kill more than 15,000 Australians each year and cost the economy A$31.5 billion in health costs. Smoking is the largest preventable cause of disease and death.

British American Tobacco , whose brands include Winfield, Dunhill and Benson & Hedges, said the government's plans would infringe international trademark and intellectual property laws, flagging a legal challenge.

New Zealand, Canada, the European Union and Britain are considering similar laws and governments in those countries are closely watching to see if Australia succeeds.

Analysts say plain packaging could spread to emerging markets like Brazil, Russia and Indonesia, and threaten growth there. [ID:nLDE7091TP]

The Australian legislation would restrict tobacco industry logos, brand imagery, colours and promotional text appearing on packs, with the only distinguishing marks being the brand and product name in a standard text and colour.

Olive green packaging had been decided on, because research showed smokers found it the least attractive colour.

The government planned the legislation to take effect at the start of 2012, with all products on sale required to comply with the new laws within six months.

Australia already has tough curbs on tobacco advertising, which have helped reduce smoking from 30.5 percent of the population aged 14 and over in 1988 to 16.6 percent in 2007. The government aims to cut smoking rates below 10 percent by 2018.

($1 = 0.935 Australian Dollars) (Reporting by Rob Taylor; Editing by Mark Bendeich)