From 12.01am on Friday, up to 30 visitors can gather in households in NSW, with 50 people outdoors, while masks will no longer be compulsory in retail shopping venues.
Masks will remain mandatory for hospitality staff, on public transport and in places of worship, gaming rooms, beauticians and hairdressers.
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Weddings and funerals will be capped at 300 people fully seated and dancing will still be restricted to 20 people in a bridal party. Singing remains limited to five people in a choir.
Ms Berejiklian said NSW was on the verge of reverting to the two square metre rule, but not before all of Greater Sydney recorded two 14-day cycles of zero community transmission.
NSW Health granted about 1300 exemptions to hotel quarantine for overseas arrivals at the height of the coronavirus pandemic and rejected a further 10,000 requests.