It comes two weeks after it was revealed Morrison had secretly appointed himself into five ministerial roles during the pandemic while prime minister.
The inquiry will be led by former High Court justice Virginia Bell, and its report will be provided by November 25 this year.
“We need to have a quick and appropriate inquiry which is not about the politics but about how this happened, why it happened, who knew about it,” Albanese said.
“We need to have transparency in the process because our system of parliamentary democracy relies upon conventions, relies upon the Westminster system of checks and balances.”
Attorney-General Mark Dreyfus said the inquiry into Scott Morrison’s secret portfolios was “required” and “absolutely made necessary by the solicitor-general’s advice”.
“We need to make sure this can never happen again,” Dreyfus said.
“(Justice Virginia Bell) will be able to make concrete recommendations to our government so that we make sure that no future government can ever do what Mr Morrison did.”
Morrison could be compelled to attend the inquiry into his secret portfolios if necessary.
“I would find it extraordinary if anyone refused to talk to a former High Court judge who is, I think, beyond reproach,” Anthony Albanese said.
“I don’t think it will require compulsion.
“But if it was the case that Virginia Bell felt like she was not getting the cooperation that was required, then I’m certain that other measures could be considered.”
Albanese said he had not spoken to his predecessor on this matter.
He dismissed the suggestion the inquiry could turn into a “political witch-hunt”.
“I do note that a range of former prime ministers have said that they would not have done this action,” Albanese said.
“I note that Peter Dutton seems to have been dismissing the significance of this.”
He touted Justice Virginia Bell as “someone far removed from politics”.
“The fact that we have such an eminent person undertaking this inquiry, I think, means that it should be welcomed by all who hold our parliamentary system of democracy dear,” he said.
Dreyfus noted three former Liberal prime ministers, John Howard, Tony Abbott and Malcolm Turnbull, all expressed their concern over Morrison’s actions.
“The three past Liberal prime ministers of our country have, all of them, condemned this conduct,” Dreyfus said.
“I’m very happy that Ms Bell has agreed to undertake this inquiry, and to undertake it expeditiously.”
The inquiry’s deadline of November 25 will allow the government to take legislative action in the last two sitting weeks of parliament of the year, Dreyfus said.