NSW Premier Gladys Berejiklian has urged councils to reconsider cancelling Australia Day and arrange COVID-safe celebrations instead.

Australia Day celebrations have been cancelled in Canterbury-Bankstown, Liverpool, The Hills Shire, North Sydney, and Inner West, and MP Craig Kelly believes councils are using the pandemic as an excuse to avoid controversy.

The Premier told Deborah Knight she welcomes health precautions being taken for large gatherings, but insisted Australia Day should still be celebrated.

“You can still mark important milestones during a pandemic by doing things differently.

“I’d be upset if people cancelled everything because of COVID.

“There are still ways to get the message out about how important that day is in bringing all of us together.”

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Several restrictions have been eased from today, including larger limits for outdoor gatherings announced last Thursday.

An announcement for indoor dining restrictions is expected to be made later this week.