A senior official from the Department of Prime Minister and Cabinet told senators that members of the Australian Government Crisis and Recovery Committee considered a declaration at three meetings in the lead up to the prime minister's announcement.
The first meeting discussing the possibility was held on February 28, the same day Lismore's flood levee was breached.
Two other meetings followed, with the final held a day before the declaration.
"As we watched the persistent nature of the weather event unfold, we realised we were watching something that might lead us down that path," the official told a Senate estimates hearing on Thursday.
Mr Morrison visited the regional city in NSW's northeast on March 9, after having finished his week-long COVID-19 isolation.
He declared a national emergency for the state that same day.
The emergency declaration gives the federal government the ability to quickly send resources.
The hearing was told the decision to make the declaration rested with the prime minister, who had to be satisfied the crisis could cause "nationally significant harm".
Senator Murray Watt asked if Mr Morrison had waited to make the announcement once he had come out of isolation for the publicity and media attention.
"This is a prime minister who is well known for his addiction to marketing and making announcements," Senator Watt said.
"You're telling me it's just a coincidence that he waited until the day he came out of isolation when he could be in Lismore surrounded by TV cameras, before he declared a national emergency."
Senator Simon Birmingham said Senator Watt "enjoyed a cheap shot," as the declaration was made following the latest meeting by officials providing information.