Since March 2020, Australia has had some of the world’s strictest border rules – even banning its own people from leaving the country.
The policy has been praised for helping to suppress Covid, but it has also controversially separated families.
“It’s time to give Australians their lives back,” PM Scott Morrison said.
On Friday, Mr Morrison said Australia’s mandatory 14-day hotel quarantine – which costs each traveller A$3,000 (£1,600; $2,100) – would be phased out.
Demand for flights is expected to be high and airlines have already warned of delays in resuming services.
Sydney, Melbourne and Canberra are currently in lockdown due to outbreaks of the virus.
New South Wales – which includes Sydney – is on track to be first state to cross the 80% threshold, in a few weeks. Victoria – containing Melbourne – is not far behind.
But states such as Queensland and Western Australia have threatened to keep their borders closed until vaccine rates are even higher.
These states have managed to maintain Covid rates at or near zero, after shutting their borders to states with infections.