"While the WHO is yet to declare ... its move towards a pandemic phase, we believe the risk of a global pandemic is very much upon us and as a result, as a government, we need to take the steps necessary to prepare for such a pandemic."
Mr Morrison had directed his Health and Education Ministers to consult with state and territory counterparts to find any gaps in their response plan.
Australia has recorded 23 confirmed cases of coronavirus.
Mr Morrison insisted it was still safe to go out to sporting events, dinner and social outings.
"The key message that I really want to get across to Australians today is because of the actions we've taken on the coronavirus, we've got ahead. We intend to stay ahead."
Health Minister Greg Hunt said the announcement triggered "full preparation" for a supply chain of necessities such as medical supplies and personnel.
"At this stage while we're in containment, we're in another role and that's preparation for a much more significant event," Mr Hunt said.
"What this does is it now moves to a full preparation phase for all of the supply chains, the medicines, we're working on the national inventories, the national medical stockpile. Tomorrow, as I say, we'll meet with COAG. What the PM has also done is authorise other ministers such as the Education Minister and the Home Affairs to work with their parties."