But they have declared they "don't hate" the man accused of the attack, Shaun McNeil.

The 18-year-old, who received his HSC posthumously, died after 11 days on life support at St Vincent's Hospital. The death was partly responsible for introduction of the new lockout laws.

Since the laws came into place, there has been a 40 per cent drop in alcohol-related assaults at licensed premises in Kings Cross.

The laws introduced 1.30am lockouts and a 3am cease in service of alcohol across the Sydney CBD but the lockout is relaxed to 3am on New Year's Eve on Wednesday.

Daniel's father Michael Christie said that the relaxation was sending out the wrong message.

"I am disappointed that in spite of all these good things that have happened, the government is now saying, 'because it's improved, relax it'. Because we aren't all getting killed on the roads are we going to up the speed limit? It just doesn't make common sense," he said.

Announcing the extension Deputy Premier Troy Grant was backed by Ralph Kelly, father of teenager Thomas Kelly, who died after a punch to the head in Kings Cross in July 2012.

Told of Mr Christie's concerns, Mr Grant said the decision to lift the 1.30am lockout for NYE had received support from the NSW Police and the City of Sydney.

"While I acknowledge there may be some concerns in the community, safety is our number-one priority," he said.  "We recognise people want to celebrate the start of the new year but we also want to maintain there will be no change to the last drinks at 3am or the tough measures we have implemented to protect the community.

"This measure ensures people celebrating on the harbour foreshore and on vessels have adequate time to make their way into a licensed venue at a time where there will be large crowds and traffic and transport congestion."

Counter-terrorism units will be based at the police operations centre on New Year's Eve in support of a "record" police presence following heightened security fears.

Assistant Police Commissioner Michael Fuller said it was common for counter-terrorism officers to be involved in New Year's Eve celebrations but  not always based at police headquarters.

Mr McNeil was arraigned in the NSW Supreme Court on December 5. He pleaded not guilty to murdering Daniel Christie.

The court heard that when Mr McNeil returns to court next year, he will apply for his trial to take place before a judge alone, rather than a jury. He will return to court on February 6, 2015.

Mr Christie moved back to Sydney from Port Stephens to support his two other sons, John, 22, and Peter, 21, who were with Daniel on the night of the attack.

"Instead of being vindictive and hateful we are carrying love and hope in our hearts because that's how Daniel would want it," he said.

"We don't hate that fellow. I am sure he's not occupied with a Merry Christmas either. I feel for him and his family."

Mr Christie said the Christmas period was very upsetting. "The last couple of days have been tough. For New Year's Eve we haven't come to anything solid but certainly the boys and I would be together."

Peter Christie, working as a screen printer with Daniel in the months before the attack, said he supported the lockout.

"I feel lost. A big part of my life has been completely removed," he said. "I don't want this to happen to anybody else."

John Christie said it had been a rollercoaster year. "The world keeps on going regardless of fact that Daniel's not here. Its been a hard year adjusting ...   a lot of bumps in the road."

Dr Tony Grabs, the Head of Trauma at St Vincent's said the hospital had not  dealt with a single punch attack since the introduction of the lockout laws, while people were not presenting so inebriated that it took six to eight hours before they were sober enough for assessment.