New Year's Eve fireworks over Sydney Harbour will go ahead this year but will be shortened to just a few minutes and the city precinct will be restricted to those with restaurant, cafe and hotel bookings in order to limit the spread of Covid-19.

Reuters reported that prime harbourside spots, normally coveted by thousands of revellers to watch the traditional 12-minute pyrotechnic display, will be set aside for health workers who have been treating Covid-19 patients and firefighters.

Although Australia has for weeks recorded just daily single-digit new cases of Covid-19, New South Wales state Premier Gladys Berejiklian said crowd numbers will be limited for the event in areas that typically draw thousands of viewers.