New South Wales records just four new cases of COVID-19 - with one of the infections linked to a Woolworths outlet

Four new cases of COVID-19 have been recorded in New South Wales on Friday as thousands of school children break for holidays.

Three cases were from returned travellers who are in hotel quarantine, while the fourth was linked to Woolworths in Campbelltown Mall, western Sydney.

Anyone who was at the supermarket in the shopping centre between 1.30pm and 2pm on September 17 is considered a casual contact and must look out for symptoms. 

Three cases are returned travellers who are in hotel quarantine, while another the fourth is someone who was at a Woolworths in Campbelltown Mall , western Sydney

Anyone who was at the supermarket in the shopping centre between 1.30pm and 2pm on September 17 is considered a casual contact and must monitor for symptoms (pictured, testing clinic in Sydney)

Contact tracing and investigations continue. 

Testing numbers have dropped over recent weeks and health authorities urge people, particular in South Western Sydney, to come forward and get tested if they have symptoms.  

The new cases come as thousands of school children begin school holidays on Friday.

NSW Health has announced the easing of restrictions in areas such as weddings, schools and theatres. 

Dancing at weddings will be allowed from Friday, however, the dancefloor will be limited to just 20 people in the bridal parties. Previously, only the bride and groom were allowed to dance. 

Interschool activities will resume on Saturday - again under COVID-safe rules - and more than one parent will be allowed to watch from the sidelines while practising social distancing. No carpooling is allowed.

School choirs, musical ensembles, camps and excursions will resume in Term 4, as will school sports.

Year 6 formals and graduations are back on and high school formals will be permitted after the HSC, while kindergarten orientation and Year 7 transitions will be allowed under COVID-safe rules.

NSW Health has announced the easing of restrictions in areas such as weddings, schools and theatres (stock image)

Under the changes, entertainment facilities can increase capacity to 50 per cent and function centres hosting corporate meetings will be allowed to cater for up to 300 people, up from 150, from next week.

'For workers across the full spectrum of the performing arts - from box office staff to ushers, from technicians and roadies to the artists - this change means more jobs,' Minister for the Arts Don Harwin said on Friday.

'For audiences, it means we can soon enjoy the experiences we have all missed so much during the pandemic.'

Tourism Minister Stuart Ayres said the relaxation of restrictions on corporate events will boost business for function centres.

'It's vitally important for the business community to back on its feet by being able to collaborate and share ideas in person once again,' he said in a statement.

Premier Gladys Berejiklian on Thursday dangled the prospect of New Year's Eve fireworks being held on Sydney Harbour this year to 'offer people a glimmer of hope'.

But mass gatherings on the harbour foreshore won't be allowed.

Major changes to restrictions in NSW: 

Weddings:

From Friday, up to 20 people will be allowed onto the dance floor at weddings, provided they are part of the bridal party.

Schools:

Excursions and school camps will also resume in Term 4.

Up to five people will be allowed to sing in choirs, and there can now be an unlimited number of students in musical ensembles, subject to social distancing. 

Both parents will be allowed to watch games from the sidelines while practising social distancing. No carpooling is allowed. 

Year 6 formals and graduations are back on and high school formals will be permitted after the HSC, while kindergarten orientation and Year 7 transitions will be allowed under COVID-safe rules. 

Theatres, cinemas and concert venues:

Entertainment facilities can increase capacity to 50 per cent and function centres hosting corporate meetings will be allowed to cater for up to 300 people, up from 150, from next week.