NSW Premier Dominic Perrottet says new relaxed mask rules shows the state is "moving forward" as it continues to record thousands of new COVID-19 infections daily.
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NSW on Friday reported 7583 new cases and six more deaths as compulsory mask rules were eased in indoor locations such as shops.
Mr Perrottet welcomed the partial end to compulsory mask wearing in NSW as part of his government's "strategic plan" to reopen the state in the wake of Omicron.
"It's great to be back in a packed room, no face masks," he told reporters in Sydney,
"The fact that we're all here today shows ... we're all moving forward."
The premier has previously said he hopes relaxing the rules will encourage workers to return to city offices to breathe life back into Sydney's struggling CBD.
While compulsory wearing of masks in shops is gone, masks remain mandated on public transport, planes and at airports, hospitals, aged and disability care centres.
They are also still required to visit prisons and at indoor music festivals with more than 1000 people.
In addition, NSW Health "strongly recommends" masks still be worn indoors where safe physical distances between people could not be maintained.
As Mr Perrottet backed in the changes, the teachers' union made a last ditch plea to the government to reconsider lifting mask mandates in schools from Monday.
From next week, students and staff at state high schools will no longer be required to wear masks, parents will be allowed back on school campuses, year groups will be able to mix freely, and assemblies and school camps return.
Staff and students will also no longer be required to undertake twice-weekly rapid antigen tests, unless they have symptoms.
Teachers Federation President Angelo Gavrielatos said with NSW still "in the middle of a pandemic" it made sense to hold off easing COVID-19 protections in schools.
Mr Gavrielatos said RATs had been working to detect and prevent infected staff and students from going to schools, while masks were curbing infection spread.
"The federation can't understand why the government wouldn't take a more gradual approach in lifting the restrictions in schools. It makes sense to keep the restrictions in place for a little bit longer and assess as required," he told AAP.
"Why lift the restrictions in such a way? There is no rush in this. A cautious approach would have been far better."
The state government has been contacted for comment.
Meanwhile, 1144 patients remain in hospital with the virus, 64 of them in intensive care, and 28 on ventilators.
The six new COVID-19 fatalities takes the state's pandemic death toll to 1879.
Australian Associated Press
