NSW Premier Gladys Berejiklian has announced people will be allowed to gather in groups of 20 inside and outside of their homes from this weekend.
Addressing reporters on Thursday morning, Ms Berejiklian said while the move was based on current health advice and data which indicated “how well we are doing”, it was vital people didn’t let their “guard down”.
She said that people will also be able to attend food courts “in a socially distanced way”.
The changes will come into effect on Saturday.
“We have done well in NSW not because of any government or body making decisions, we have done well because the community, as frustrating as it has been, because the community has come together, worked hard and I want that to continue,” Ms Berejiklian said.
She warned the virus is still present within the state, meaning anyone with symptoms must come forward and get tested.
“We cannot forget the virus is still amongst us, the virus is deadly, it's contagious,” she said.
On Wednesday however, NSW Health did note there had been no known cases of community transmission across the state within the last two weeks.
There was no announcement at the press conference for the previous 24 hours’ total number of cases.
The changes follow the state government's decision on Wednesday to permit adult and children community sports around NSW to resume from July 1 after halting in March.
Gyms and other physical fitness centres will reopen from June 13.
Protesters to be fined in future mass gatherings
Ms Berejiklian this week also said she would seek to draw a line in the sand for mass gatherings in NSW after last Saturday's Black Lives Matter protest.
Some 20,000 people joined the rally in Sydney after the Court of Appeal deemed it lawful less than 15 minutes before the start.
NSW Police Commissioner Mick Fuller on Thursday said police would fight in court a second BLM rally planned at Sydney's Town Hall on Friday, and issue $1000 fines to anyone who attends.
"We know that the organisers can't control the numbers. We know that they can't meet the health obligations that are in place for everyone else," Mr Fuller told Sydney radio 2GB.
Prime Minister Scott Morrison said on Thursday the BLM protests across Australia had likely delayed the lifting of restrictions on funeral attendances.
Do you have a story tip? Email: email@example.com.