The NSW Government has announced the state's controversial lockout laws will be lifted in Sydney's CBD and Oxford Street from January 14.

However, the laws will remain in place in Kings Cross.

The changes include:

Removing 1:30am last entry for all licensed venues in the Sydney CBD, including Oxford Street

Removing 1:30am last entry for all licensed venues in the Sydney CBD, including Oxford Street Extending last drinks by 30 minutes at venues with "good records"

Extending last drinks by 30 minutes at venues with "good records" Removing restrictions on serving cocktails, shots and drinks in glass after midnight

Removing restrictions on serving cocktails, shots and drinks in glass after midnight Extending bottle shop opening hours across NSW until midnight from Monday to Saturday, with an 11pm closing time on Sunday

Extending bottle shop opening hours across NSW until midnight from Monday to Saturday, with an 11pm closing time on Sunday Increasing small bar patron capacity from 100 to 120 across NSW

Over the last six years thousands of people have attended rallies opposing lock out laws. ( ABC News: Jean Kennedy )

Sydney's lockout laws were introduced in 2014 by then-Premier Barry O'Farrell in a bid to reduce alcohol-fuelled violence.

They were sparked by the two "coward-punch" deaths of Thomas Kelly and Daniel Christie in Kings Cross.

The 2014 changes prevented people from entering a venue in an entertainment precinct after 1:30am and mandated last drinks at 3am.

But opponents of the laws argued they hurt Sydney's nightlife, and led to the closures of licensed premises.

The Night Time Industries Association (NTIA) welcomed the overturning of the NSW lockouts, with chair Michael Rodrigues describing them as "fantastic to see" and "a great start".

"Turning Sydney's nightlife back on isn't as simple as flicking a switch — we'll be taking our time to ensure the industry does its part to get Sydney back on track in a considered way," he said.

NSW Premier Gladys Berejiklian said she supported the reinvigoration of Sydney's entertainment districts, but that the focus should remain on community safety.

"Sydney has transformed dramatically over recent years, and we need to ensure we have a strong and vibrant night-time economy that reflects our position as Australia's only truly global city," Ms Berejiklian said.

Ms Berejiklian said the introduction of more public transport — including the soon-to-be-completed light rail project — would make after-dark movement through the city safer and easier.

The NSW Police Association previously called for the laws to be extended statewide. ( ABC TV )

The lockout laws were probed by a NSW Parliament Joint Select Committee on Sydney's Night Time Economy this year.

The committee, comprised of politicians, police and health authorities, recommended the laws be scrapped everywhere but Kings Cross.

St Vincent's Hospital in Darlinghurst, which described a "conveyor belt of carnage" in a submission to the committee, called the changes a "disappointing conclusion".

Director of Emergency Paul Preisz said the hospital would be "keeping an eye on the impact of the changes and will keep the Government and public informed".

"More alcohol equals more harm. We can't be clearer than that," Dr Preisz said.

The hospital said it had saved $500,000 in medical costs as a result of the legislation.

The Alcohol and Drug Foundation agreed, arguing the "rapid, uniform abolition of alcohol regulations in Sydney's CBD" could increase the risk of alcohol-related assaults and injuries.

Chief executive Erin Lalor called the scope of the changes "too much too soon".

"A sensible and precautionary approach would be to lift the restrictions in stages over 12 months, with regular reviews during this time," Dr Lalor said.

Lockout measures introduced to nearby Newcastle in 2008, combined with a curfew, resulted in a 36 per cent drop in assaults.

However many argued the drop in assaults correlated with a drop in patrons which was caused by the strict nightlife rules.