The impact of the GST has forced Australia's million-dollar-a-year traditional medicine industry swiftly towards regulation, as the NSW Hunter Region's biggest herbal medicine college opens up entry to university for its students.

In partnership with Charles Sturt University (CSU), students from The Newcastle College of Herbal Medicine will have the opportunity to gain university level qualifications on completion of CSU's Bachelor of Health Science (complementary medicine).

Under the agreement, The Newcastle College will continue to offer the herbal medicine training in areas such as remedial massage and nutrition. CSU will give students credit on successfully completing this private college course, which they can transfer into the health science degree.

The Federal Government is urging the natural medicine industry to establish accepted accreditation standards within the next three years, to ensure continued GST exemption.

Principal of the Newcastle College of Herbal Medicine, Toni Simpson said the move towards university level qualifications for natural therapy practitioners has been happening for a number of years, but the GST has had a dramatic impact on the natural therapy industry.

"There has been much debate within the industry about accreditation but this latest government legislation has helped move this process along faster, bringing it into line with acceptable standards in mainstream medicine," Ms Simpson said.

"The agreement with CSU will see our students have the opportunity to gain the industry recognised qualifications they need to run very professional, modern traditional medicine practices into the future."

This new agreement follows the successful launch of CSU's complementary medicine degree by distance education to students from Health Schools Australia in 1998. It is the only university level qualification in this field supported by the Australian Traditional Medicine Society Accreditation Board.

Coordinator of CSU's complementary medicine degree, Charles Fogliani, said the alliance with private providers in this field has been very successful.

"Private providers have made an excellent contribution to the educational process in complementary medicine and it is important that this role continues," he said.

"Agreements such as this recent partnership with the Newcastle College, shows how universities and private providers can work together to enhance the profession and open up opportunities for continued research in the field."