NSW will scrap the requirement for household contacts of people with COVID-19 to isolate from 6pm Friday.
Business leaders have been calling for the end to the seven-day isolation rule, saying it will ease staff shortages for businesses trying to recover from the pandemic.
On Wednesday, NSW chief health officer Dr Kerry Chant said while the nature of contact within a household posed a "significant risk" for transmission, the state was putting in a range of risk mitigation measures instead of the current "strict" household contact rules.
Instead of household contacts having to isolate for seven days, Dr Chant they were asking them to follow some "simple guidelines".