Prime Minister Scott Morrison will make an announcement on Monday confirming the arrangements.
It has been nearly two years since these groups have been able to come to Australia without having to quarantine after international borders were closed due to COVID-19.
Treasurer Josh Frydenberg said allowing more people into Australia from overseas was the natural next step.
"We want to allow skilled migrants to come to our country as well as international students sooner than later," Mr Frydenberg told Sky News.
"International students are worth some $40 billion to our economy, and we know that there are workforce shortages out there and skilled workers can play a key part."
It comes after Australia welcomed tourists from Singapore on Sunday, following the start of a quarantine-free travel bubble between the two nations.
While Australia's international borders have been open since the beginning of November, only fully vaccinated citizens, permanent residents and their families have been able to travel to the country without quarantining.
Mr Frydenberg said Australia's booster program was critical in the coming months, following coronavirus surges in Europe and restrictions being reimposed.
"We want to look forward not back, and looking back is looking at lockdowns," the treasurer told the Seven Network on Monday.
"We have been able to secure that vaccine so people should be encouraged to get the booster shot when they are eligible, but I think we can live safely with the virus."
Finance Minister Simon Birmingham said the reopening of Australia to students and migrants was supported by the country's high vaccination rate.
"We've got 91 per cent having had their first dose, so that means we need to be progressing through the different stages," he told ABC radio.
"In having opened our international borders to fully vaccinated citizens, permanent residents and their families, we're now looking to the next stages of that."
It comes after Australia was warned the slow vaccine rollout amongst its Pacific neighbours threatens their economic recovery from the pandemic.
Meanwhile, the Northern Territory's outbreak is expected to grow beyond currently locked-down areas following nine new cases detected at remote Binjari, about 320km south of Darwin over the weekend.
Victoria reported 1029 new cases on Monday and a further three deaths.
In NSW there were 180 infections and one death reported on Monday.
In the ACT there were 16 cases registered in the previous reporting period.
A new case was reported in Tasmania after an 18-month-old boy from Victoria tested positive after travelling to Hobart with his mother.
