The national cabinet has moved to a much more complete easing of bans on gatherings, allowing up to 10,000 people in some sports stadiums under stage 3.
Indoor gatherings will be unlimited in numbers, with national cabinet scrapping an earlier plan to move to a limit of 100 people. Instead, any number of people will be allowed inside, subject to a limit of one person per four square metres.
The changes happen once states and territories moved to stage 3, expected in July. most at now at stage 2.
The national cabinet also set a path for international students, saying they would be allowed on a pilot basis for semester 2. The decision is subject to the states and territories submitted plans for quarantine and other safety arrangements, Mr Morrison said.
States are also reopening borders, with Queensland considering a date of July 10, and South Australia announcing July 20.
At a meeting on Friday, the national cabinet agreed that stadiums of up to 40,000 people will be allowed crowds up to one-quarter capacity - which means crowds of up to 10,000.
Mr Morrison said the new rule would also apply to festivals and other outdoor events, but only where they were ticketed and seated. The changes would happen once states moved to stage 3.
But no decision has been made about stadiums with bigger capacities. Mr Morrison said more work was needed before crowds would be allowed in stadiums that accommodated more than 40,000 people.
The national cabinet agreed that Australia's policy was to suppress the virus, not eliminate it, Mr Morrison said. The emergence of positive cases would not halt the three-step process to reopening the economy.
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Most states are now in stage 2, with stage 3 due by July.

More to come