SYDNEY - The Australian city of Sydney's controversial lockout laws will be wound back as of January next year, including the removal of last entry time for venues in the city's central business district (CBD).

New South Wales (NSW) Premier Gladys Berejiklian announced the change on Thursday saying that the laws introduced in 2014 to lock out bars from 1:30 am undoubtedly achieved their goal of helping curb alcohol-fuelled violence.

"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," Berejiklian said.

As of Jan 14 next year, laws will no longer mandate a 1.30 am last entry for all venues in the Sydney CBD Entertainment Precinct (excluding Kings Cross) and restrictions on the type of drinks served after midnight will be removed.

Additionally bottle shops across the state of NSW will now be open until midnight, small bar patron capacity will be increased, and last-drinks time will be extended for venues with a good track record.

Critics of the laws, including those in the hospitality and music industries, described them as damaging to Sydney's reputation as a global city for international visitors to enjoy themselves and feel comfortable.

Minister for Jobs, Investment, Tourism and Western Sydney Stuart Ayres hoped that the new rules will encourage more people to visit Sydney and boost the tourism industry.

"Sydney is Australia's number one tourism destination, with the world's most iconic harbour, scenic beaches, world-class transport, and a vibrant arts and culture scene," Ayres said.

"It's time to embrace a 24-hour-economy that creates jobs, fosters arts, culture, live performance and safety on our streets."

The government will monitor the impact of the abolished laws and conduct a review after 12 months.