From 1 June, up to 50 people can enter pubs, cafes and restaurants in NSW as long as they stay seated.
Premier Gladys Berejiklian recently announced the new easing of restrictions and said there would still be very strict rules in place for venues.
"The last thing we want to do is shut businesses down because they haven't complied, "she said.
The four square meter of space rule will continue to be enforced in venues, bookings of more than 10 people will stay banned and customers will not be allowed to stand.
Currently the limit on dining venues is 10 patrons with social distancing.
Deputy Premier John Barilaro said the changes to restrictions will have a big impact on regional businesses that have suffered through drought, bushfires and the coronavirus.
The increase in patrons also lines up with easing of regional travel restrictions and opening venues like museums, galleries and libraries from Monday.