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Dancing, singing and vertical drinking will be permitted in pubs and clubs across Greater Sydney from March 17.
New South Wales Premier Gladys Berejiklian said after nearly 40 days of no new community cases of coronavirus, they're happy to see social distancing restrictions eased.
The leader added that from this Friday (February 26), people will be able to welcome up to 50 individuals to their home.
Thirty people will also be allowed on a dance floor at weddings from 12:01am on Friday and up to 50 people will be allowed in gym classes.
Up to 30 people will also be allowed to sing in choirs and congregations, and cinema capacity will be extended to 100 per cent.
The Premier said while this is good news for people all across Greater Sydney, people need to keep in mind that the threat of community transmission is still there.
"This does come with risk. Make sure no-one comes into your house with symptoms, who has not been tested and told they can leave their house," she said.
"Make sure there is good ventilation, good distancing. Please be careful if you are taking up this opportunity.
"You can have 50 people at your house but you need to do so with caution and you need to make sure that everybody is following COVID rules."
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