Sydney has welcomed in 2022 with a spectacular fireworks display over its harbour as Australia's east coast rings in the new year.

Neither the growing number of Omicron cases nor a heatwave appeared to dampen the spirit of those determined to join in the festivities in person as the world began to farewell 2021.

As the countdown to midnight got underway in Sydney, a special Welcome to Country spectacular lit up the harbour as part of the earlier 9pm fireworks.

Created by visual and performing artist, Blak Douglas, the display honoured First Nations cultures on the mainland and Torres Strait and Islander people.

The Sydney Opera House steps are usually packed, but social distancing put an end to that this year.(Getty Images: Brook Mitchell)

Mr Douglas said the fact the display took over one of the most famous icons on the planet was "tremendously honourable".

"We are paying respect to First Nations people as we are meant to do within a welcome to country today," he said.

A live performance by Indigenous hip-hop stars Dobby and Barker was also integrated into the display.

COVID-19 restrictions are not stopping the fun for many, with crowds turning out to watch early fireworks displays in Melbourne and elsewhere

They were accompanied by some young Derek girls from Western Sydney.

But even though skies in both Sydney and Melbourne lit up, unlike previous years, it was a pre-booked event to keep crowds low.

Melbourne welcomed back its fireworks displays this year, even as the city sweltered in the heat.

Some major fireworks events were held around Victoria in Bendigo, Geelong, Paynesville, Mildura, Phillip Island, Shepparton and Warrnambool.

But for some, Sydney was still the destination of choice, despite more than 20,000 COVID-19 infections reported in NSW on Friday.

Melbourne resident Diane Mead decided to "wing it" and make a last-minute trip to Sydney to see the fireworks.

"We've never ever been here before. We've never done it. We just thought we'd take the risk," she said.

Not deterred by the sharp escalation of COVID-19 cases, she did all she could to ring in the new year safely.

"It's a huge concern but we're masked, we're vaccinated, it's in the open air, we're being respectful and social distancing," she said.

"Any moment we can get of freedom, let's just go for it because we don't know what's happening tomorrow.

"Everyone's really keen to be set up in prime position. It's going to be a sensational night."

Lisa Adametz and her daughter Hannah also travelled from Melbourne to see Sydney's New Year's Eve fireworks for the first time.

"We're really, really excited. We've been waiting a long time for this after the lockdowns," Ms Adametz said.

"We've both been stressing to death, even travelling here, worrying it would be cancelled at the last minute.

"Being here, it feels like a weight has been lifted. Fingers crossed, no more lockdowns. That's all I'm wishing for in 2022."

In his annual new year's message, Prime Minister Scott Morrison said Australians should be optimistic about the coming year.

"Australia is stronger today than we were a year ago and we're safer, " he said.

"We have one of the lowest death rates and highest vaccination rates from COVID anywhere in the world."

And after a tough year of lockdowns and border closures, Opposition Leader Anthony Albanese is hoping families and friends can get back together.

"People have been isolated often for long periods of time," he said.

"Let's hope 2022 brings health and happiness for all."

NYE celebrations under the COVID cloud

Even as events kicked off around the country, there was caution in the air. 

In Queensland, the biggest New Year's Eve events were centred around the Brisbane River.

The city's official celebrations, The Lord Mayor's New Year's Eve Fireworks, returned after a year off and lit up the river at 8:30pm, and again at midnight.

Crowds were required to check in to view the fireworks.

Thousands gathered at South Bank for the first fireworks display of the night.

It was quieter than previous years, with pre-pandemic events seeing crowds flock to the parklands.

Those who were there braved the rain and the COVID-19 threat.

Stewart Wilton was there with his stepson Hugh, saying he was not too worried about the COVID risk.

"I think we're all sort of out here to enjoy the end of the year and get on with things," he said.

"We know coronavirus is a part of life so I think we've just got to … enjoy things as much as we can."

With the Victorian government warning of challenging times ahead, crowds remained low In Melbourne.

Authorities have urged people to take a commonsense approach to new year celebrations to protect themselves.

Health Minister Martin Foley asked people to hold New Year's Eve parties outside or with full ventilation if they are indoors.

Meanwhile, thousands of people descended upon the Darwin waterfront to ring in the new year.

Amy Shark and The Veronicas headlined the ticketed event with fireworks at 9pm and at midnight.

Kathy Burns from the Waterfront Corporation said while the event was not sold out, there were COVID-safety measures in place.

"We've reduced the capacity down from 10,000 to [9,000] to be able to ensure there is some safe distancing plus also, too, with our different zoning that is helping with that, being able to zone people in different areas as well," Ms Burns said.

"Everyone needs to be mindful of COVID, keep your distances while you're in lines."

In Hobart, Taste of Summer returns

Crowds also gathered at Hobart events, including the much-anticipated Taste of Summer Festival. 

Revellers lined the waterfront to watch the early fireworks in Hobart.(ABC News: Maren Preuss)

Many have made the decision to travel interstate to Hobart to welcome in the new year, despite tomorrow's changing travel requirements. 

COVID-19 measures including masks and social distancing are being enforced across the Tasmanian capital for New Year's Eve. 

Crowds gathered on Hobart's waterfront to view the 9:30pm and midnight fireworks.

Perth celebrations continue amid restrictions

New Year's celebrations are getting underway in Perth, with families and friends heading out to mark the end of another year.

While many events have been cancelled, fireworks displays and smaller outdoor gatherings are taking place in Perth city and in areas along the Perth metropolitan area, including Rockingham and Gloucester Park.

The City of Perth will have two fireworks displays, with roving entertainment and night markets on offer.

High-risk events including music festivals have been cancelled, and nightclubs are closed under the WA government's COVID-19 restrictions.

Licensed venues can only provide seated service, and an indoor mask mandate is in effect.