The list of subsidised destinations includes the Gold Coast, Cairns, the Whitsundays, Alice Springs and Broome.
The government said the A$1.2bn (£670m; $930m) scheme aims to revive the local tourism sector amid the pandemic.
That industry has been hardest hit by border closures and travel restrictions since early last year.
Prime Minister Scott Morrison said the package of 800,000 cheaper airfares - to be offered between April and July - would encourage locals to visit other parts of the country.
