Skateboarding, sport climbing, surfing and karate will round out the Summer Games schedule to cover 33 sports and 339 events.
The Chef de Mission of the Australian 2020 Team, Ian Chesterman, said the addition of the four sports will buoy a new wave of young Australian athletes.
"These new sports open the Olympic movement to a new generation of athletes who can represent their country at the highest level, inspiring countless other young Australians to follow in their footsteps."
Angie Scarth-Johnson was just nine years old when she set a new world record in outdoor climbing.
Five years later, she is aiming to be on Australia's Olympic team.
"I can't even imagine how amazing it would be," said Scarth-Johnson. "I think it would be every athletes dream."
The current open champion in speed climbing, Ben Abel, said he is also excited his sport is part of the Olympics.
"It's really difficult because every sport's hard but this is a full body thing every muscle has to be strong," the 19-year-old said.
Rapper Amar Hadid made headlines three years ago when she released a song paying tribute to the Sydney Lindt Cafe Siege victims.
Born to Lebanese parents, she now wants success for Australia in Tokyo.
"I think we have every chance of getting medal, we're a strong nation in skateboarding," Hadid said.
The Olympics is also staying in touch with future generations for all the right reasons.
As well setting a new record in the number of sports featured at the Games, the event is also aiming to be the most gender balanced Olympics.
Almost 49 per cent of athletes will be women.
"It’s great to see girls being equal to everyone,” said Scarth-Johnson.
Hadid believes female athletes will be just as strong as their male counterparts.
"Women in every sport are getting better every day, I have no doubt they’ll be as good as the men."
