Australia is currently in Phase A of the government's four-stage plan out of the pandemic, where lockdowns and quarantine are still required to deal with outbreaks.
“We will get to the next phase [Phase B] when Australia reaches 70 per cent of the eligible population who are double dose vaccinated,” Mr Morrison said on Friday.
“We will get to Phase C when we hit 80 per cent.
“Australia will get this done by working together. The targets are there for us all to achieve and for us all to work towards.”
Australia is currently at 16 per cent of the eligible population fully vaccinated.
Scott Morrison announces plan out of pandemic
'Special rules' for the vaccinated
Asked when it was possible for the country to reach the initial 70 per cent target, the prime minister said he would not put a timetable on it, but he hoped by the year's end.
"I believe we can get there by the end of the year to 70 per cent," he said.
Mr Morrison said lockdowns in Phase B would be less likely but still possible, and international border caps would remain.
Inbound passenger caps, which were recently halved, would also be restored back to around 6000 a week.
There would be a larger cap for vaccinated returning travellers coming to Australia in Phase B.
The prime minister said there would be “special rules” for those who got vaccinated, where restrictions would be eased. The details of that are still to be worked through, he said.
“Because if you're vaccinated, you present less of a public health risk. You are less likely to get the virus. You are less likely to transmit it,” Mr Morrison added.
Targeted lockdowns in Phase C
In Phase C, Mr Morrison said lockdowns would only be “highly-targeted” and would not be imposed metropolitan-wide.
“Where there are vulnerable communities - they may be in remote communities, they may be in particular communities within a city, where there may be cultural elements that may be involved in this,” he said.
“It may be a particularly vulnerable population, then you need to leave yourself and the states and territories for public health reasons, they will need to leave themselves that option.”
In Phase C, there will be no cap on the number of fully vaccinated Australians returning to the country.
Caps will also be raised for students, economic and refugee visa holders.
Australians who’ve been fully vaccinated will be able to travel overseas in this phase, and there could be unrestricted travel to new countries that Australia launches a “travel bubble” with.
The final phase involves opening up international borders, and only high-risk inbound travellers will be required to quarantine.
“Once we get above the 80 per cent, the scientific evidence shows that we're largely then in a place where COVID can be managed consistent with other infectious diseases and of course, we don't apply those types of restrictions to the flu or many other things like that,” Mr Morrison said.
In a reference to the UK, Mr Morrison said Australia’s plan was not about “freedom days”.
“We've always been in Australia taking our own path to this.”
He said the targets were there for every Australia to work towards.
“If you get vaccinated, you are taking Australia a step closer to where we all want to be," the prime minister said.
“So I encourage Australians to take that step to be vaccinated immediately.”
As it stands, about 38 per cent of the population have had at least one dose, and just over 16 per cent have had both.