Mr Morrison says he deeply regrets his insensitive response to questions around workplace behaviour in Parliament House.
During a nationally televised press conference, he claimed News Corp was handling a complaint about a woman being harassed in a female toilet.
News Corp came out swinging after the prime minister made the claims, saying no such complaint existed.
Chairman Michael Miller suggested Mr Morrison had conflated a report about a verbal exchange between two employees with the broader national debate about the harassment of women.
Mr Miller said the comments undermined the principle that people must be able to raise issues safely and in confidence.
The prime minister said he accepted News Corp's account, he was wrong to raise the issue, and the emotion of the moment was no excuse.
"I especially wish to apologise to the individual at the centre of the incident and others directly impacted," he said in a statement overnight.
"I had no right to raise this issue and especially without their permission."
Greens leader Adam Bandt said the apology was not good enough.
"The PM must explain to parliament today how this lie came into being and why he told the public something that wasn't true," he said.
"If he's prepared to say something like this that appears simply made up, what else has he told the public that isn't true?"
Labor has accused the prime minister of weaponising the confected harassment claim.
The opposition has questioned why any woman would come forward with concerns if they know their allegations are going to be aired on national television.
Meanwhile, the person charged with overhauling workplace culture inside Parliament House is expecting a broad range of people to come forward and tell their stories, including people in non-political roles.
Sex Discrimination Commissioner Kate Jenkins said her review would extend far beyond Capital Hill.
"People might be at polling booths or might be at social events," she told a Senate committee.
Her review was sparked by former Liberal staffer Brittany Higgins coming forward last month to allege she was raped by a colleague inside Parliament House after a night out in 2019.
