The vast majority of Sydney's lockout laws will be no more from January 14.
NSW Premier Gladys Berejiklian made an announcement in Sydney on Thursday that the controversial laws, enacted in 2014, would be wound back everywhere in the city except the Kings Cross precinct.
A parliamentary report by the Joint Select Committee on Sydney's Night-time Economy in September advised the coalition government to lift the laws in the CBD, saying they cost NSW $16 billion a year.
Ms Berejiklian said 3.30am last drinks would be implemented - a 30-minute extension - while the government has pledged a review in 12 months.
Ms Berejiklian had pledged to take action on lockout laws by the end of 2019.
Demonstrators take part in a protest rally against the New South Wales government's lockout laws. Source: AAP
She said on Thursday the lockout laws had made Sydney safer, but it was now time to encourage the city's 24-hour economy.
"While the extended trading hours will provide a boost for the night-time economy, community safety will always be a focus," Ms Berejiklian said.
The government would remove restrictions on serving cocktails, shots and drinks in glass after midnight in the Sydney CBD precinct.
They would also extend bottleshop opening hours across NSW to midnight from Monday to Saturday and to 11pm on Sunday.
The parliamentary committee report, released on September 30, said the Kings Cross party precinct is "not yet sufficiently changed" to warrant the removal of lockout laws, and the issue should be revisited in 12 months.
Lockout laws will remain in place in Kings Cross. Source: AAP
The report found more work was required in Kings Cross to ensure safety, with the district requiring a "specific, nuanced approach".
It said the repeal of lockout laws in Kings Cross, without improvements to lighting, street layout and venue density, would prompt a return to excessive alcohol consumption and violence.
