Johnson and Morrison, who reached the in-principle agreement over dinner on Monday, are set to formally announce the deal Tuesday morning.
The deal removes all tariffs on United Kingdom goods and represents the first major trade deal negotiated from scratch since Britain left the EU.
'The Brexit that has occurred is an opportunity for us to pick up where we left off... and to once again realise the scale of the trading relationship we once had, ' the Australian Prime Minister said at the Chamber of Commerce breakfast on Monday. Who better would understand the issues and sensitivities that have to be worked through? I think can be greatly enhanced by these additional steps'.
As negotiations for an Australia-United Kingdom trade deal draw to a close, Prime Minister Scott Morrison has expressed a desire to return the countries' economic relationship to what it was nearly 50 years ago.
The UK exported 5.4 billion pounds worth of services, including 1.4 billion pounds of insurance and pension services and 780 million pounds of financial services, to Australia in 2020. The free trade agreement announced today has the most advanced digital trade provisions of all the deals the United Kingdom has signed so far, opening up opportunities for our innovative businesses operating in emerging technologies, such as AI and cleantech.
The government listed out the benefits of the deal as helping Scotland by removing tariffs of up to 5 per cent on Scotch whisky; tariffs will be removed and customs procedures simplified on machinery and manufacturing goods; and auto manufacturers in the midlands and north of England, including Tata Motors owned Jaguar Land Rover, will see tariffs of up to 5 per cent cut, expected to boost the demand for their exports.
Mr Johnson said the changes would be a "brain gain" and not a "brain drain".
'We have quite a lot of experience in that, we've been able to secure many of these arrangements, and of course you need to explain them to your populations but the ultimate explanation is jobs.
'We either are passionate about growing the markets in which we can operate - providing opportunities for our own producers and suppliers and services - or we will stay in a situation of being unable to take up those opportunities'.
"Both prime ministers have held a positive meeting in London overnight and have resolved outstanding issues" in relation to the trade pact, Tehan said in a statement.
The deal will pave the way for more Australians to live and work in Britain and offer exporters more market options.
'And who better to do it than with Australia at this time?'
It means British products like Scotch whisky, cars and biscuits will be cheaper to sell into Australia, with the trade relationship set to improve on the £13.9 billion it was worth previous year.
British farmers will be protected by a cap on tariff-free imports for 15 years, using tariff rate quotas and other safeguards.
The deal will be keenly scrutinised by British farmers, who fear they could be forced out of business if the deal eliminates tariffs on lamb and beef imports from Australia.
A trade deal with Australia will come as great news for many of our members who have always been exporting there as well as those who are hoping to expand their trade ambitions.
'We want a deal that is good for the British public and any agreement would have protection for the agriculture industry'.