NSW venues offering live music, stand-up comedy and book readings will be allowed to stage outdoor events without lodging a costly development application, under a state government plan to boost the 24-hour economy.

The Minns government’s third tranche of “vibrancy” reforms will also enable venues and registered clubs to increase outdoor dining patron numbers by up to 30 per cent without seeking planning approval.

Music and Night-time Economy Minister John Graham said the changes would help local councils, businesses and communities in Sydney and regional areas avoid “outdated … arduous, expensive planning approvals”, and that they would make it easier for venues to stage events, host live performances, extend trading hours and use outdoor spaces.

“These changes will increase entertainment options and boost the bottom line for businesses,” Graham said.

The changes, which come into effect on Saturday, aim to build on earlier reforms aimed at reviving the state’s night-time economy.

Live entertainment such as music, comedy, theatre, book readings and other performances will be permitted outdoors, in addition to indoors, and will be able to be held at venues in all zones, including those in residential areas, without a development application, provided the venues comply with certain rules.

The events must not start before midday, and they can take place up to twice a week. Performances must finish by 8pm in residential zones, and by 10pm in zones next to residential areas. In all other areas, events can run until midnight.

There are also changes to exempt development standards, which previously did not allow a venue to increase its patron capacity if it offered outdoor dining. The reforms mean a venue or a registered club with approval for up to 100 patrons can increase its capacity by up to 20 per cent through outdoor dining without a development application. If a venue has approval for more than 100 patrons, it can boost its outdoor dining capacity by up to 15 per cent, or up to 50 patrons.

Venues in designated “special entertainment precincts” might be able to boost capacity by up to 30 per cent, for a maximum of 100 extra patrons. The government said the new provisions would not override patron limits set by a liquor licence, or building code and fire safety requirements.

The changes include extended trading hours for unlicensed businesses, such as shops and cafes, to enable them to operate until midnight if the council declares a certain area is part of a special event, such as a street fair, a religious festival or an agricultural show.

Events such as street fairs and community festivals would be allowed as exempt development on all public land, such as town squares, streets and parks, removing the need for development approval.

Similar rules would apply for cellar doors and on-farm cafes, as well as restaurants using outdoor dining areas.

Planning and Public Spaces Minister Paul Scully said the “simple” changes to the planning system would “reawaken NSW’s events, entertainment and hospitality sectors”.

“We’re simplifying the rules to empower local councils and businesses to host events, extend trading hours, and bring communities together through arts, culture and hospitality without the headache of unnecessary red tape,” Scully said.

The government said the changes responded to a recent report from NSW Productivity Commission chief Peter Achterstraat, which found the time and expense required to lodge a development application for extended trading hours was frequently a significant barrier to businesses staying open later at night.

The report’s criticism of “red tape” prompted Planning Institute of Australia (NSW) president Sue Weatherley to urge reforms to balance the needs of residents, businesses and communities.

She said businesses were “right to be frustrated by duplicative approvals, drawn-out processes and high compliance costs”.

“These inefficiencies hold back good ideas and stifle economic activity,” she said.

“Good planning is the foundation of a vibrant 24-hour economy and reform should strengthen the planning system, so planners can deliver communities that are both liveable and lively.”

The Minns government’s earlier reforms included introducing an “eyes wide open” clause in a property’s planning certificate to inform residents moving into a noisy area known for late-night activity, to deter noise complaints and to help hospitality and entertainment venues thrive. They have also set up, or are looking to introduce, “special entertainment precincts” – areas with relaxed rules around trading hours and noise complaints for live music venues – in spots including Enmore Road, Burwood, Manly, Cronulla and Byron Bay.

Other initiatives included relaxing rules for outdoor dining, preventing a single noise complaint from being able to shut a venue down, slashing licensing fees by 80 per cent and extending trading hours for live music venues.

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