The New South Wales government has announced that from midnight tonight (January 2), masks will be compulsory at shopping centres, when catching public transport, attending entertainment venue such as cinemas, at places of worship, hair and beauty salons and gaming areas. Staff at hospitality venues will also be required to wear a mask.

"None of this is a surprise," said the NSW Premier Gladys Berejiklian in a press conference today. "We have already strongly wanted people to wear a mask but we do not want to restrict peoples ability to go about that business.

"But we want to increase economic activity and mask-wearing in these settings will ensure we have the confidence to do that."

Berejiklian says mask wearing will be enforced from tomorrow but fines of $200 for people who don't comply will be issued from Monday January 4.

The news follows seven new locally acquired cases of Covid-19 yesterday, five from western Sydney and linked to the Berala cluster.

In addition, the government announced further tightening of restrictions. Gym classes will be capped at 30, down from 50. Weddings, funerals and places of worship will also be reduced to 100 people and will be subject to the four-square-metre rule. Indoor performances have been capped at 500 attendees and outdoor events at 2000.

The lockdown on the lower part of the northern beaches has also been lifted, with residents who live south of Narrabeen Bridge now treated in line with greater Sydney.