Codeine is a highly addictive opioid included in products like Panadene and Neurofen Plus.
There are more than 16 million purchases of over-the-counter painkillers containing codeine each year in Australia.
And, further, there are more than 5 million purchases of over-the-counter cold and flu medications containing the opioid.
But from 2018 onwards, a prescription will be required to purchase those products.
The Royal Australian College of General Practitioners' Dr Bastian Seidel has welcomed the move.
"We welcome the decision to make codeine prescription-only, because it's going to save lives. Codeine is a dangerous drug, and it, really, caused over a thousand deaths over the last 10 years. Your body metabolises codeine into a morphine, so it's quite strong, and it should be prescription-only, as it is in America, as it is in Japan, as it is in most of Europe. And Australia should not be the exception to it. "
Federal health authorities say the number of Australians being treated for codeine addiction has increased in recent years, with more than a thousand a year now seeking help.
The Therapeutic Goods Administration says many people are inappropriately using codeine-based products to treat chronic pains themselves and it can lead to addiction.
But some opponents of the move say making codeine-based products prescription-only is not the answer.
Pharmacist Claudia Sharkawy says the ban will put a strain on the system.
"I do think, in the long run, it's going to add a burden to a medical system that's already quite stretched. The majority of people who are using them over-the-counter are using them appropriately and for short-term pain management. Yes, there is a small percentage of abuse, but that's also happening with prescription medication. And we see it frequently with doctor-shopping and fraudulent prescriptions."
Susan Nielsen is a senior research fellow at the National Drug and Alcohol Research Centre at the University of New South Wales.
Ms Nielsen has told the ABC more funding will be needed to treat those withdrawing from the drug.
"There are effective treatments. Unfortunately, they're often delivered through alcohol-and-drug services, and that can put codeine users off seeking these services, but the treatments available are effective. Also, just raising awareness with pharmacists that these problems exist (is important)."
The Pharmacy Guild of Australia says there are already safeguards to prevent codeine abuse.
They include a national database, which tracks purchases of codeine products, alerting pharmacies to potential abuse.
There are calls for more targeted measures, including warning labels, to educate consumers about the potential risks.
