Travellers on Qantas and Virgin Australia will be able to use their mobile phones and other electronic devices during flights from Tuesday.
The new rule applies to international and domestic passengers flying the two Australian airlines.
It will affect tablets, e-readers and small game consoles, as well as smartphones.
Passengers were previously asked to switch off these types of devices during flights for safety reasons.
The Civil Aviation Safety Authority (CASA) said it approved applications from both Australian airlines late on Monday.
Some airlines in the United States, Europe and New Zealand already allow passengers to keep their phones on during flights.
Larger devices such as laptops, however, will still need to be stowed away during takeoff and landing due to risks of turbulence, said CASA spokesperson Peter Gibson.
“The change does mean that passengers will be allowed to speak on their phones from gate to gate though,” Mr Gibson added.
“But at some point crew will ask passengers to put their electronic devices on flight mode, probably before the safety briefing is given.”
Once a smartphone is in its so-called flight mode, it means passengers can no-longer send text messages or make calls.
Mr Gibson said the next step for the two Australian airlines would be the introduction of technology that would allow internet and voice call connections in-flight.
Satellite phone connections have been enabled on flights for many years, but the costs are high.
Newer technology is available to make more affordable in-flight calls and connect to the internet during flights, however neither Qantas nor Virgin have made that investment yet.
“Trials have taken place with that technology with Qantas between Sydney and Melbourne,” Mr Gibson said.
“But there are a lot of costs involved and it will be a commercial decision for the airlines as to whether they can recover those costs.”
CASA said other airlines in Australia were likely to follow suit and apply to for permission to allow passengers to use some electronic devices during flights.