Children and teenagers living under lockdown in the Shoalhaven can now have friends visit them at home, under a new 'friends bubble' system.
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From noon on Tuesday, those aged 18 and under are allowed to have two designated friends form part of the bubble, under which they can visit each other's homes.
All people over 18 living in the homes must be fully vaccinated, and the friends must live in the same local government area or within five kilometres of each other.
The bubble must also always consist of the same three friends.
Parents or carers must not interact with other adults when dropping children off at their friends' homes.
Premier Gladys Berejiklian said the government was able to allow the change because of the state's good vaccination rates.
"This change will hopefully make a big difference for families during the school holidays and allow young children and teenagers to catch up and reconnect with their friends," Ms Berejiklian said.