Gyms and churches will benefit from lifted COVID-19 restrictions from Friday, as the NSW Government worked towards returning the state to "a pre-COVID environment".
Treasurer Dominic Perrottet announced on Wednesday that church services would now be able to have up to 300 people at a service, subject to space restrictions.
Gyms, which have previously needed to have COVID safe marshalls in place at all times, will now be able to operate without one when there are fewer than 20 people there.
Supporting the easing of restrictions, Minister for Health Brad Hazzard said churches would need to make sure they kept track of who was attending the services and that parishioners were not to intermingle.
"I think it's sensible for people who are in a house of worship for a lengthy period of time, [to] consider wearing a mask," he said.
There was still to be no mass singing in church services, he said.
Mr Hazzard said NSW was continuing to "do extremely well" in its daily case count.
The state recorded 10 new cases of COVID-19 in the latest daily figures, but only two of those were locally transmitted.
Both were close contacts of a confirmed case linked to a person who attended the Great Beginnings childcare centre at Oran Park.
Eight cases in overseas travellers in hotel quarantine were also diagnosed - which Mr Hazzard said emphasised how important the state's quarantine system was.
There were also double the number of tests to 8pm on Tuesday - 14,932 tests - compared with the previous 24 hour period when there were 7,401 tests.
"This is still not good enough," Mr Hazzard said. "For us to be continuing to open up our state... we need people to go out and get tested with even the slightest symptoms of a cold or flu.
"We know it's out there."
