While some sites are free, authorities charge fees of up to $600 for tickets to access many vantage points where people gather to watch the fireworks on Sydney Harbour Bridge and at other foreshore sites.
"We have the most beautiful harbour and the most beautiful city, and every person should be able to enjoy it - for free," Labor leader Chris Minns said on Wednesday.
"That's what Labor will do if we are elected".
Under Labor's plan, ticketing could still be used for the purposes of crowd control and safety, but at no cost.
In the past, councils and state authorities have imposed fees to help with the clean-up afterwards as well as crowd control.
Labor deputy leader Prue Car said the Coalition government was "out of touch" with families contending with rising living costs.
"There's not a blade of grass they (the government) won't charge for," she told reporters from the Botanic Gardens overlooking the Sydney Harbour on Wednesday.
"They (vantage points) used to all be free but this government are the ones slowly taxing and charging up to half of the public places to watch fireworks,"Â
"These are not private facilities. It's the right of everybody in NSW - it can be done free of charge".
She estimated it would cost over $5 million, which would be accounted for in the budget, for all Sydneysiders and travellers to enjoy the annual fireworks show which has become a global landmark.
But Premier Dominic Perrottet panned the proposal as having a "lack of policy depth".
"It's bread and circuses," he told reporters on Wednesday.
"They haven't gotten the policy depth to take this state forward."
He said half of the ticketed events were free, pointing to his track record as premier of helping families out.
The City of Sydney manages six sites, all of which are free including four requiring tickets.
The harbourside vantage points can attract more than one million people, with some camping more than 24 hours ahead of the big event to snag the best spot.
This year's event will involve a 9pm show created by Indigenous artists Carmen Glynn-Braun and Dennis Golding focused on stories that heal and strengthen First Nations voices, history and experiences.
At midnight, more than 2000 fireworks will be launched from the four sails of the Sydney Opera House, while 7000 effects will fire from 184 positions on the Sydney Harbour Bridge.
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