However, an infectious disease expert has warned Australians to remain on high alert as a more virulent strain of the virus, potentially lethal to humans, remains active globally.
An outbreak focused on NSW's Hawkesbury region resulted in more than 320,000 animals being destroyed since June to curb infections of the fast-spreading disease.
The cases detected differed from the H5N1 strain that has devastated animal populations overseas, with Australia remaining the only continent free of that highly pathogenic strain.
"Emergency zones in the Hawkesbury region have now been lifted in all previously impacted areas," the Department of Primary Industries and Regional Development said on Friday.
More than 320,000 animals were destroyed to curb the spread of the potentially devastating disease. (Mick Tsikas/AAP PHOTOS)
Rachel Purcell, an infectious disease expert at Murdoch Children's Research Institute, said it was good news the emergency had ended, but said the H5N1 risk remained.
"It's important to recognise that the strains of bird flu that we've had here in Australia are different to that highly pathogenic strain that's been seen overseas," she said.
With the threat reduced, Dr Purcell said it was a good time to "be forward thinking about what we can do to prevent a future pandemic".
"Certain countries have started vaccinating at-risk (human) populations," she said, adding that pregnant women in particular were at risk of contracting avian flu.
NSW Agriculture Minister Tara Moriarty said ridding the state of the virus took an "immense response" by authorities "working with industry, farmers and the community".
"I want to thank all the staff and industry personnel who worked tirelessly to protect the industry and minimise impacts," she said.
The mass culling of birds in NSW and Victoria led to widespread egg shortages in supermarkets. (Dean Lewins/AAP PHOTOS)
The move by NSW came after Agriculture Victoria earlier in January lifted quarantine from the last of eight commercial properties impacted by that state's avian influenza outbreak.
About one million birds were destroyed to bring the Victorian outbreak, Australia's largest on record, under control.
The mass culling of birds in NSW and Victoria led to widespread, continuing egg shortages in supermarkets.
The 163-day response included movement restrictions for poultry, related products and equipment and an order for poultry to limit interaction with wild birds.
Avian influenza, commonly known as "bird flu", is a highly contagious virus that can cause sudden death in poultry.
The World Health Organization says the deadly H5N1 strain rarely affects humans and is not easily transferred between people.
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