Ms Berejiklian said the easing of restrictions was a balance between health and the economy,but warned an outbreak would trigger further restrictions.
"We will be forced to go backwards if there is an outbreak,"she said.
"What we've tried to achieve here is a healthy balance of giving people freedom and allowing businesses to flourish,while also maintaining those basic principles of living in a COVID safe way."
NSW Treasurer Dominic Perrottet said Monday would be"freedom day".
"Two square metres means hundreds of millions of dollars injected into the NSW economy[and] the creation of thousands of jobs right across our state,"he said.
On Wednesday NSW recorded its 25th consecutive day without a locally transmitted case of COVID-19.
Chief Health Officer Dr Kerry Chant said:"On the balance of probability,we probably have virtually eliminated community transmission."
But the Premier again cautioned against complacency.
"Just because we haven't had any community transmission in the last 25 days,doesn't mean we won't. In fact,I predict we will,"Ms Berejiklian said.