A review of Sydney's controversial lockout laws and night-time economy is being largely welcomed by business groups and anti-lockout campaigners.
Premier Gladys Berejiklian on Wednesday announced a cross-party parliamentary committee will be consulting with NSW Police and health, community, entertainment and music groups to see if any changes are needed.
The premier says non-domestic assaults have dropped in the CBD and Kings Cross since 2014, when the government introduced controversial lockout laws in response to alcohol-fuelled violence.
"During this period, we have also worked to relax certain aspects of the laws such as extending trading hours for bars and clubs for major events, and making it easier for small bars, restaurants and cafes to start up and operate," Ms Berejiklian said in a statement.
"After five years of operation, it makes sense for us to now take stock and examine whether any further changes should be made."
Leader of the Keep Sydney Open party Tyson Koh, who missed out on an upper house seat in the March state election, said the review was a positive sign.
"We knew that (the laws) were ridiculous from day one and finally the premier has seen the light," Mr Koh told AAP.
"Sydney is ready to move on from the draconian lockout laws and we trust that the lower and upper house members of parliament on the committee will come to the right decision."
Lord Mayor of Sydney Clover Moore also welcomed the announcement, saying the lockout laws had taken a "sledgehammer" to Sydney's nightlife.
"As the committee considers winding back the laws, it must consider other measures to ensure a safe and vibrant nightlife," she tweeted on Wednesday.
Ms Moore suggested running public transport 24-hours on Friday and Saturday nights and replacing life-time liquor licences with renewable licences.
The parliamentary committee will look at any measures needed to maintain and enhance health outcomes and community safety, enhance the night economy and ensure that regulations - including lockout laws - remain balanced.
Police Minister David Elliott said all legislation should be reviewed regularly, and noted community safety was high on its terms of reference.
"I'll be working with the police commissioner to make sure that that is remembered," he told reporters on Wednesday.
The committee will report to parliament by the end of September.
