Recent court rulings had stopped medicine and supplements manufacturers from branding some products as Australian made where they were manufactured locally using wholly imported ingredients.

Following pressure from Labor and the $4.9 billion complementary healthcare sector, Industry, Science and Technology Minister Karen Andrews has decided complementary medicines by continue to access the logo.

Medicine products manufactured in Australian facilities regulated by the Therapeutic Goods Administration will be allowed to market products overseas as being Australian made and will be allowed to use the official Australian Made logo.

The sector, which employs about 29,000 people in Australia, was subject to a review by a taskforce established in December to consider rules limiting the use of country-of-origin labelling.

“This is a decision which will provide certainty for consumers and industry, and exports from this sector contribute about $1 billion to our economy," Ms Andrews told The Australian Financial Review. 

“Consumers, whether they be in Australia, China, India or elsewhere can be confident that products using the logo are manufactured to the highest standards.”

In February, supplements giant Blackmores slammed the restrictions on branding its products as Australian made and called for an urgent change to regulation from the federal government.

Then outgoing chief executive Richard Henfrey said the restrictions were "simply ludicrous" and were damaging to the growing export market, which supports more than 80 factories in Australia.

Mr Henfrey left the company at the end of last month.

The government said the decision would help Australian businesses take advantage of access to new and bigger markets, including through free-trade agreements signed with China, Japan, Korea and Indonesia.

“The Australian Made logo can be of great benefit to local industry as a universal, high-brand recognition, point of difference to other products," Ms Andrews said.

“Its use demonstrates to consumers that they can have the confidence that a vitamin or mineral supplement carrying the Australian Made logo has been manufactured in Australia to the highest quality standards."

Labor's spokesman on industry, innovation, science and research, Kim Carr, has pursued the government over the rule change.

In February, Senator Carr accused the Coalition of misunderstanding the complexity of country-of-origin rules through a series of ministerial changes, risking $170 million in wages.

In 2018, there was $936 million in exports based on the Complementary Medicines Australia and Austrade definitions.

More than 56 per cent of the trade went to Chinese consumers — worth more than $526 million — ahead of lucrative markets in Hong Kong, New Zealand, Vietnam and South Korea.

Marcus Blackmore, the 73-year-old major shareholder of the vitamins group, said in March he would be trying to supercharge a reinvigoration of the company, which delivered a poor first-half result in February as China sales softened substantially.