'It's time': Sydney approves plan for 24-hour city

The City of Sydney has unanimously passed a late-night trading plan which will allow for changes such as 24-hour trading in the city centre.

Protestors hold placards during the Don't Kill Live Music Rally in Sydney. Source: AAP

A 24-hour city centre could become a reality in Sydney after the passing of a new late-night trading plan it's hoped will push the NSW state government to reconsider its lockout laws.

The City of Sydney's Late Night Trading plan passed at its monthly council meeting on Monday night, after councillors unanimously voted in favour of new development controls.

The new controls allow for 24-hour trading across the city centre and extended trading to 2am for low-impact food and drink venues on major high streets.

A Sydney bar. Source: AAP

A new cultural precinct for Alexandria, and late-night trading areas in fast-growing neighbourhoods such as Barangaroo and the Green Square precinct were also given the green light.

Changes in the plan are subject to the NSW government's lockout laws.

"It's time for Sydney to become a 24-hour city and we've now given businesses the opportunity to open around the clock," Lord Mayor Clover Moore said in a statement on Monday night.

More than 10,000 people said they wanted a diverse and exciting night-time economy, not a city that is "unsafe or that shuts down as soon as the sun goes down," Cr Moore said.

"The City of Sydney is doing its part. I hope these changes encourage the NSW Government to reconsider the lockout laws and help Sydney regain its status as one of the world's premier late night destinations."

However, a spokesman for Customer Service Minister Victor Dominello said it was often the council's "own restrictions rather than lockout laws that stop venues from trading later at night".

Sydney Lord Mayor Clover Moore Source: AAP

"The NSW Government supports a vibrant and diverse nightlife for Sydney and welcomes initiatives that contribute to this," the spokesman said in a statement.

"The City of Sydney has already stated that their plans for 24-hour trading would be subject to the lockout and last drinks measures that apply to certain licensed venues in the Sydney CBD and Kings Cross precincts."

The changes will take effect in June.

Businesses and venues will need to apply for additional trading hours through a development application process.

They will be subject to trial periods to ensure the community is consulted and that venues are well managed.