The easing of restrictions will allow Lizotte's to lift its capacity from 160 to 200. A raft of previously sold out shows will soon be made available and owner Brian Lizotte said he would employ additional staff.

A year after the country was put into lockdown amid the pandemic, NSW Premier Gladys Berejiklian announced a raft of COVID-19 restrictions would be repealed on Monday.

Masks won't be mandatory anywhere, with commuters to decide for themselves if they need to mask up on public transport.

Big weddings and funerals are back - with no limit on the number of guests - while dancing and singing will be allowed in any environment, including places of worship.

There will be no limit on the number of visitors allowed in homes, as long as an electronic record is kept of who was there once the number exceeds 100.

"When we found out two hours ago we were punching the sky," Mr Lizotte said on Wednesday.

"It's fantastic, we've been missing that little bit of extra cream for the artist, because when you get up to those numbers [200] that's when they can start making some extra coin and they've been starved for so long."

Mr Lizotte celebrated the news with musician Tim Freedman, who played at the venue on Wednesday. Freedman will return in August for three full-capacity shows with his band The Whitlams.

The lifting of dance restrictions will be welcomed by music fans at the Cambridge Hotel, who have hosted seated shows since reopening last July.

However, licensee Dru Russell said the Cambridge's band room capacity would remain at 240 under the changes due to the one person to two square metre rule.

"It's still an awkward one because you're still stuck with that cap and no one is doing big numbers," Mr Russell said. "Instead of sitting and watching a show, you can stand."

Mr Russell remains hopeful further easing of restrictions will occur after Easter.