Fireworks for children and families at 9pm as well as the renowned midnight event will go ahead.
Lord Mayor of Sydney Clover Moore said the city is preparing for people to come into the city for New Year's Eve, pending restrictions changing due to COVID-19.
Here is what we know about New Year's Eve celebrations in Sydney this year.
Are you allowed to attend New Year's Eve celebrations?
Sydney officials are encouraging people to attend New Year's Eve celebrations this year, even saying to "make a night of it".
"We would love people to make a night of it, come in and stay in a hotel, go to a bar, enjoy a meal and watch the fireworks," Ms Moore said.
Currently, crowds will be allowed to attend but Ms Moore warned circumstances could change.
"What wouldn't be a definite is if circumstances change and if people can't come in," she said.
"At the moment we're planning for people to come in."
Ms Moore encouraged people to attend the city for the evening after the impact of COVID-19 restrictions on the hospitality industry.
"The hospitality industry, our bars and restaurants and performers have really suffered during COVID-19," she said.
"Book into a restaurant to start the evening, support businesses who've been doing it tough they need your support."
Sydney's New Year's Eve vantage points will be open this year, however, they will be ticketed.
Tickets are free and are already available.
Will the fireworks go ahead?
Yes, they will.
The fireworks at 9pm for children and families will go ahead this year, after being cancelled due to COVID-19 restrictions last year.
The Welcome to Country display at 9pm will welcome everyone to Gadigal land.
This will be curated by Sydney-based artist Blak Douglas.
The famed midnight fireworks will also go ahead and organisers said the theme will be a "celebration we've been able to make it through COVID-19".
The fireworks are tipped to feature some different effects this year.
"Lots of pastel colours, ochre colours, mushroom shapes, fireworks in the shape of cubes which will three dimensional, a lot of different effects on the opera house as well as the harbour bridge," Fortunato Foti, organiser of the fireworks display, said.
There will also be double the number of fireworks on display over the Sydney Opera House this year.
Mr Foti also said there will be a different soundtrack "to what we're used to" this year.
What are the current restrictions?
Fully vaccinated NSW residents are able to attend outdoor gatherings with no limit on numbers.
For events with more than 1000 people such as New Year's Eve, a COVID-19 safety plan will need to be in place.
If you plan to go to a hospitality venue like a bar, restaurant or nightclub, you will need to be fully vaccinated.
You are able to sing, dance and drink standing up.
If you are not fully vaccinated, you won't be able to attend hospitality venues on New Year's Eve.
Do I need to be fully vaccinated?
Organisers said each vantage point may require you to be vaccinated.
"While COVID-19 vaccination requirements are not specified in the terms and conditions for sites managed by the City of Sydney, we may need to make changes to reflect the latest public health updates or best practice," organisers said.
Under current restrictions, fully vaccinated people are able to attend outdoor gatherings with no limit on numbers.