Hothouse theatre will soon host its largest crowd in 17 months after the Victorian government lifted a series of patronage caps.
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Entertainment and sporting venues can move to 100 per cent capacity if they are seated venues, for up to 1000 people per space.
A density quotient of one person per two square metres will still apply at these venues in non-seated spaces.
This means Hothouse chief executive Karla Conway and her team are planning for how they can facilitate 100 per cent capacity.
"What we've got to do now is ... see if we can actually get our full capacity in the house without exceeding the regulations in the foyer," she said.
"As we move towards our next production in May, which is the Mission Songs Project, we're looking at how we can maintain those health restrictions.
"But certainly, it's welcome news."
The increase from 75 to 100 per cent capacity comes after Hothouse was originally restricted to 32 people when it can hold 162.
"When it was at the one person per four square metres ... it was extremely difficult for us," Ms Conway said.
"Over the year, we saw different caps coming in ... but without the movement on the density quotas, it didn't have the same impact.
Hothouse held their first show in March after a year-long absence, and Ms Conway said they could have sold more tickets for their return under 75 per cent capacity.
"I think it was a good test case for us to ease our way back in; we want to be conservative about our move back towards 100 per cent capacity," she said.
"We've seen NSW go completely back to 100 per cent, which is excellent, so we're certainly buoyed by the potential for us to be back at that space very soon.
"We will make sure that we've got the people management plans and we'll be developing a clear communications plan so that at every step of the way audiences know where we stand.
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"We don't mind doing the work, because if it means that we can open then it's worth it.
"When I think about colleagues overseas - the state of Broadway, the state of the West End - we're in such a privileged position to be even having this conversation and we don't take that for granted."
Seated indoor and outdoor entertainment, cultural and sporting venues seeking attendance of more than 1000 people per space must apply for consideration under the Public Events Framework.
The government has indicated they will work towards future easing of caps for ticketed seated venues.
There are no longer density quotients for office-based workplaces except in publicly accessible areas.