NSW will enter a new summer normal from next week, with all borders open and coronavirus restrictions significantly eased.
Residents will have full access to every Australian state and almost full liberty to socialise as the government eases restrictions on Monday as COVID-19 elimination looks likely.
"From Monday, life will be very different in NSW," Premier Gladys Berejiklian said on Wednesday, the state's 25th consecutive day without a local case of the virus.
Chief Health Officer Kerry Chant said she believed "we probably have virtually eliminated community transmission."
The government will lift a tranche of restrictions from Monday, including changing the social distancing recommendation of one person per four square metres to one person per two square metres.
Gyms and nightclubs are the only exceptions to this changed rule.
There will be no caps on patron numbers at hospitality venues or at weddings and funerals, and standing in outdoor hospitality venues will be permitted.
Nightclubs can open, with up to 50 people on the dancefloor at a time.
Controlled events will be permitted to have up to 5000 people, while stadiums and outdoor theatres can operate at 100 per cent capacity.
Indoor stadiums and theatres can operate at 75 per cent capacity and choirs of up to 50 people will be permitted to perform indoors.
The government has also agreed to lift the limit on outdoor gatherings - including back yards - to 100 people, in time for Christmas celebrations.
Some recommendations - including social distancing, seeking testing when ill, using hand sanitiser and wearing masks in enclosed spaces - won't change until the arrival of a vaccine.
"In the absence of perfect information, health is always going to act in a precautionary way," Dr Chant said.
And Ms Berejiklian warned that if a COVID-19 outbreak occurred in the coming months, restrictions would return.
But she said the virus' near-elimination was a vindication of her government's approach.
"We've managed to get to this place while keeping the economy open, keeping jobs going. We haven't like other states imposed onerous border restrictions, haven't imposed onerous lockdowns," Ms Berejiklian said.
Treasurer Dominic Perrottet labelled Wednesday "freedom day" in NSW and said the eased limits would inject millions of dollars into the economy.
"(One person per) two square metres means we're almost back to square one and that's a great result for the people of our state," he said.
It comes after retailers and publicans called for a further easing of restrictions to encourage people to get in the mood for Christmas spending.
Australian Hotels Association NSW chief executive John Whelan labelled the changes an "early Christmas present" and said they would help re-employ some 9000 people.
"The entire hospitality sector has been hard hit by the COVID-19 crisis with hotels shut down across NSW in March and 94 per cent of our workforce stood down or terminated," Mr Whelan said.
Restaurant and Catering Australia chief executive Wes Lambert said the rule change would "revolutionise" trade and put the sector back on track for 2021.
The national economy on Wednesday emerged from its first recession in nearly 30 years, growing by 3.3 per cent in the September quarter.
Total spending in NSW jumped 6.8 per cent in the same period, having fallen by 8.8 per cent in the pandemic-affected June quarter.
