From 1st of November people will no longer need an exemption to leave the country, provided they are fully vaccinated.
Thwe government said only Australians are eligible but some rules for foreigners will be relaxed soon.
"Before the end of the year, we anticipate welcoming fully vaccinated skilled workers and international students," Home Affairs Minister Karen Andrews said in a statement.
The changes have been met with delight by Australians and others globally. Many have spent long periods separated from loved ones.
At present, people can leave Australia - which has recorded more than 160,000 Covid infections and 1,653 deaths - only for exceptional reasons such as essential work or visiting a dying relative.
Entry is permitted for citizens and others with exemptions, but there are tight caps on arrival numbers. This has left tens of thousands stranded overseas.
Australians under 12 will be exempt from the new vaccination requirement for travel.
All other unvaccinated travellers still need exemptions and must quarantine for 14 days in hotels on return.