R&CA CEO John Hart said the changes will encourage greater participation in late night entertainment while activating the city. Hart also indicated increasing the patron capacity of small bars from 60 to 100 following an independent review improves operational efficiencies for businesses while providing an alternative atmosphere in which patrons can enjoy a drink late at night.
"The Government has listened to the concerns of industry and the community and is balancing both. Recognising the low-risk profile of cafes, restaurants and small bars will encourage an alternative night-time culture in the city.
"Sydney has the largest night time economy in Australia worth $3.5 billion. Cafes and restaurants generate more than half of this value at $1.9 billion. We need to recognise live music and low-risk venues are part of the solution in reinvigorating Sydney's nightlife.
"The changes will help further solidify the great reputation this city and state has for its hospitality by making it easier for businesses to operate sustainably.
"This is important to our economy but most important to tourism and visitor satisfaction. The changes represent a cautious response that will have a positive impact on businesses in our sector."