Queensland has not reached the 80 per cent first dose level, while only 67.4 per cent are fully vaccinated. But the state is still ahead of only Western Australia and the Northern Territory.
Palaszczuk said masks will only be needed at airports and on planes, in line with federal rules.
"Queenslanders have done an incredible job all through the pandemic – the more of us vaccinated, the faster we can return to life the way it used to be," the Premier said.
Residents have, however, been urged not to throw away their masks, as there will likely be situations when they are needed again in Queensland.
"Don't throw away your mask – they are a powerful defence against Covid-19," Palaszczuk said.
Masks are also strongly recommended for public transport and places where people cannot socially distance.
In less than two weeks' time, when the state is expected to hit 70 per cent fully vaccinated target, inoculated travellers from Covid-19 hot spots will be allowed to enter by air if they test negative to and complete 14 days of home quarantine.
Borders are set to open completely to fully vaccinated visitors on December 17.