New NSW lockout laws in time for Christmas

Just in time for the festive season small bars in Sydney's CBD and King Cross will be able to trade until 2am and hold an extra 40 patrons.

From Friday their closing times will be pushed back from midnight to 2am, while the patron limit will be increased from 60 to 100.

"We have brought forward these reforms so communities and businesses across NSW can take advantage of later trading times during the busy summer holiday period," Justice Minister Troy Grant said on Wednesday.

The statewide curfew on takeaway and home delivery alcohol sales hours will also be extended by an hour, from 10pm to 11pm.

The state government has also begun plans in response to the Callinan Review to relax lockout laws for music and live entertainment venues after cabinet approved the changes to liquor laws last week.

"Liquor & Gaming NSW is working with the industry on how venues will be able to seek exemptions to extend lockout times from 1.30am to 2am and last drinks from 3am to 3.30am," Mr Grant said.

Venues can start applying by the end of the year, with exemptions to be granted from January 16.

The hotly-debated lockout laws were introduced in 2014 after a string of fatal one-punch attacks.