A 10th straight day of zero locally acquired COVID-19 cases will see restrictions eased in NSW from Friday.
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Up to 30 people will be allowed to visit a home and a maximum of 50 people will be able to gather outside.
Also from Friday, people visiting shops will no longer have to wear masks if they choose.
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NSW Premier Gladys Berejiklian also indicated there would be concessions in the hospitality sector.
She said if NSW maintained zero or low cases for the next two weeks, the four metre square rule will revert to the two metre square rule for weddings and other functions.
The Premier however stated that masks would remain mandatory on public transport as the government encouraged workers to return to the office.
NSW Health remains concerned about low testing numbers after just 9723 tests were done in the latest 24-hour period to 8pm Tuesday.
"The continuing low testing numbers is a concern as the virus may still be circulating in the community," a spokesman said.