Canberra, Oct 18 (IANS): Thousands of children returned to schools in Sydney and more restrictions were eased for fully vaccinated adults on Monday, as Australia's most populous state of New South Wales (NSW) surpassed its Covid-19 inoculation target.

The state entered the second stage easing of restrictions with more than 80 per cent of its residents aged 16 and over have been double-dose vaccinated, reports Xinhua news agency.

Kindergarten, year 1 and year 12 students are back in the classroom full-time after nearly four months of home learning.

The remaining year groups will follow from next week.

Masks will be optional in offices, while up to 20 people can visit a home and up to 50 people can gather outdoors.

Retail stores, pubs and gyms can allow more vaccinated patrons. Weddings, funerals, and hairdressers can have unlimited guests.

The easing of restrictions also came amid an encouraging sign of relief for the local transmission of coronavirus, as the state logged 265 new locally acquired Covid-19 cases on Monday, the lowest daily figure in more than two months.

Besides, five deaths were also reported.

However, NSW Premier Dominic Perrottet warned the state should be braced for cases to rise in the next couple of weeks as the modelling was predicting a case surge while restrictions ease and mobility increases.

He said there will be "teething issues" with the return to school "but those challenges do not outweigh the importance of getting kids back in the classroom".