Australian consular officials discovered BAT's latest move in a shop in Strasbourg, France.
The pack features a leaping kangaroo on the front and the claim to Australian popularity on the back.
Attorney-General Nicola Roxon said many Australians would be outraged.
"I'm very critical because what it shows is that tobacco companies will stoop to any levels to try to mislead people to buy their products," she told Sky TV.
"They're using this sort of a packet in Europe with a kangaroo, with an Australian map, playing on our healthy lifestyle and trying to make that attractive to hook Europeans into this very dangerous habit."
But Roxon admitted there was little the Government could do about it: "We don't have control over copyrights and the way products are marketed overseas.
"Of course it does underscore why we are taking this action here in Australia, because we know that this sort of misleading behaviour has been used by tobacco companies for decades."