Worshippers will also have greater freedom to join in Christmas carols and winding back some of the pandemic's most difficult restrictions, such as those placed on funerals, has been welcomed by the Wagga Catholic Diocese.

Wagga Liquor Accord secretary and William Farrer Hotel publican Dave Barnhill said the end of the ban on stand-up drinks for outside areas was welcome as the Christmas party season got underway.

"It's a good start. [One person per two square metres] doubles our numbers inside, so it is going to help with Christmas bookings going ahead," he said.

"Standing up outside is going to be well-received. It won't be long until it is open slather, which is what we are looking forward to.

"We would like to see standing up inside; if you can have it at a football stadium, you should be able to have it at other venues, but we are getting there."

As part of the changes announced by NSW Premier Gladys Berejiklian on Wednesday, hospitality venues, retail shops and places of worship will be limited to one person per two square metres after more than 25 people had been admitted.

Scribbles Cafe owner Terrance Jacobs said the doubling of customer limits would reduce how often staff would have to turn people away because of over-capacity.

"I definitely think it will help out. It will relieve a lot of pressure on business owners, who will be able to supply their products to more people without saying 'sorry, you can't come in. We are at capacity'," he said.

"You'll be able to provide services to everyone without fear of having to say no or the COVID marshall coming in and saying you'll get a fine."

Religious services, weddings and funerals will also be subject to the new two-square-metre rule, with up to 50 members of a congregation being able to sing indoors with a recommendation to wear masks.

Wagga Catholic Diocese Priest Brendan Lee said the restrictions on the number of people at funerals had been the hardest rule to bear during the previous months.

"It's very good news as things going back to normality is a great thing for us, especially at Christmas as it's the biggest time of the year for us," he said.

Father Lee said the diocese would have to take another look at its plans for Christmas events, which had been formed under the previous restrictions.

"We were only going to have small, five-person choirs and nobody else was going to do any singing," he said.

"The concessions on funerals are even better than on weddings, because with weddings, everyone understands.

"With funerals, it is very hard for people to come to terms that they cannot grieve together."

On Monday, December 7, the NSW government will ease the following restrictions allowing:

Venues including hospitality venues, retail and places of worship:

1 person per 2sqm (with 25 people permitted before the rule applies), except for: Gyms and nightclubs (1 person per 4sqm, with a maximum of 50 people allowed in gym classes or on the dancefloor at nightclubs)

Stadiums and theatres:

Outdoors: 100 per cent seated capacity, and 1 person per 2sqm rule for unstructured seating areas.

Indoors: 75 per cent seated capacity.

Gatherings in outdoor public spaces:

Up to 100 people for outdoor gatherings (up from 50).

Up to 5,000 people for outdoor events that are fenced, ticketed and seated (subject to the 2sqm rule).

Up to 3,000 people for other organised outdoor events i.e. community sport and outdoor protests (subject to the 2sqm rule).

Dance Floors:

Up to 50 people indoors.

Singing

Up to 50 performers indoors, no maximum cap outdoors.

Advice is for congregation/audience to continue wearing masks if singing.

Under the changes, maximum capacity caps will be removed subject to the 2sqm rule for:

Bookings at hospitality venues;

Weddings;

Funerals;

Regional agricultural shows;

Corporate events; and

Religious services.