Twice as many customers will be allowed back in NSW cafes and restaurants from Friday, with a suite of restrictions relaxing across Greater Sydney.
The state has reverted back to the two-square-metre rule for indoor venues and outdoor events, and mandatory mask use has been scrapped in a number of settings.
Face coverings are now optional in hairdressers, beauty salons, places of worship and hospitality, but will remain mandatory on public transport, in taxis and Ubers.
When announcing the changes on Wednesday, Premier Gladys Berejiklian said while masks would become optional in many indoor places, they are still strongly recommended.
Gyms will maintain the four-square-metre rule, while caps on weddings and funerals remain at 300.
Only 20 guests will be allowed to dance at weddings and singing in public remains capped to five people.
The changes come as NSW approaches an important milestone.
The state on Thursday recorded 25 consecutive days without a local COVID-19 case – three days short of the mark of eliminating the virus in the community.
Only three cases were diagnosed in hotel quarantine from more than 16,000 tests across the state on Wednesday.
Meanwhile, health officials are tracking down people who were at the Holiday Inn at Melbourne Airport between January 27 and February 9, after more cases were linked to the quarantine hotel which has since been closed.
Anyone at the hotel in this period must get tested and isolate for 14 days regardless of the result.