Mr Morrison called on the visa holders to consider coming to Australia as soon as possible.
“My message to them is come on down,” he said.
“We want you to come to Australia and enjoy a holiday here in Australia – move all the way around the country and, at the same time, join our workforce.”
The rapid rise of COVID-19 infections has resulted in thousands of workers being forced off work due to the virus or being required to self-isolate as a close contact.
Treasurer Josh Frydenberg said he hoped changes to the application fees would make a “big difference” in addressing ongoing workforce shortages.
He said an estimated 175,000 students and working holiday makers were being called on to come to the country.
“We are putting out the welcome mat,” Mr Frydenberg told reporters.
The federal government last week announced a 40-hour per fortnight working cap would be removed for foreign students in sectors affected by workforce shortages.
Mr Morrison on Wednesday also announced $3 million would go to Tourism Australia to support a marketing program targeting backpackers and students.