International flight caps on Australian citizens, residents and their families returning to Australia will be lifted for New South Wales, Prime Minister Scott Morrison has announced.
The decision to axe quarantine requirements means Australians in NSW will be permitted to leave Australia and return.
Flight caps will remain in other states where hotel quarantine is still required.
"This is a further sign of the national plan coming into effect and allowing Australians to start reclaiming so many of the things that have been taken from them throughout this pandemic," Mr Morrison said.
The parents of Australian residents and citizens will also be able to come to Australia.
"I know that will be very welcome news to Australians right across the country who were hoping to be reunited with their family members, their parents who are overseas," Mr Morrison said.
"In New South Wales's case, it means those family members will be able to come into Sydney if they are vaccinated and not have to quarantine under the arrangement that the premier has announced today."
The lift of the cap on overseas arrivals will for now be limited to Australian citizens, residents and their families.
Tourists and international students will not be allowed into Australia from November 1 as the NSW Government had hoped.
"It is about Australian residents and citizens first," Mr Morrison said.
"The Commonwealth government has made no decision to allow other visa holders, student visa holders and international visitors."
When asked when tourists and students would be let in, Mr Morrison replied: "Not yet".
"The (NSW) Premier understands that is a decision for the Commonwealth government not for the state government," he said.
"I will progress steadily but at the same time carefully and I welcome this first step."