As of Friday 16 December, small bars will be able to begin trading until 2 am, while bottle shops will be able to sell alcohol until 11 pm.

The news follows the Premier for New South Wales, Mike Baird’s decision to relax the state’s lockout laws and takeaway alcohol sales restrictions and an announcement from the local Government this week that it would bring the new legislation into effect ahead of the the festive season.

Minister for Justice, Troy Grant, said he hoped the reform would give communities and businesses across NSW the opportunity to “take advantage of the later trading times during the summer holiday period.”

In addition, the new legislation allows small bars in Sydney’s CBD and Kings Cross to increase the patron limit from 60 to 100.

Executive Director Fergus Taylor of Alcohol Beverages Australia, the peak body for the alcohol industry, said it was pleased with the Government’s decision and that it showed “the Government has listened to NSW business owners.”

The Government is also currently working on relaxing the lockout laws for live entertainment in the precincts.

“Liquor & Gaming NSW is working with the industry on how venues will be able to seek exemptions to extend lockout times from 1.30 am to 2 am and last drinks from 3 am to 3.30am,” Mr. Grant said.

“Venues will be able to start applying by the end of the year, with exemptions to be granted from 16 January 2017.”

Venues should note, however, that Sunday trading times will remain at 10 pm and check their local development consent and trading hour conditions in case they apply.