Crowds of people turned out to watch the fireworks, despite the rain.
Australia Day celebrations in Sydney wrapped up last night with a fireworks display over Darling Harbour.
About 500,000 people crowded into the CBD to celebrate, despite rainy, overcast conditions.
The Premier, Nathan Rees, told the crowd Australia Day should be a time for people to give thanks for what they have.
"Thanks that we live in peace and harmony, in the most fortunate, the most beautiful country in the world. Thanks that we stand together, united in our diversity to confront the challenges that lie ahead for our nation, and for the world. To confront them with strength, with faith, with optimism," he said.
The NSW Governor Marie Bashir said she is confident Australians have the ability to overcome the problems caused by the global financial crisis.
"We acknowledge that such a time confronts us," she said.
"Economic concerns deriving from global financial problems, employment pressures, job security, but I have the greatest confidence in our ability to overcome.
Revellers praised
Police say most Australia Day revellers were generally well-behaved, despite a number of brawls.
The riot squad was called to Manly yesterday afternoon when up to 80 people jumped on top of cars and smashed windows as they ran up the Corso.
One girl received cuts and was taken to hospital for treatment.
Meanwhile, four men were taken to hospital with minor stab wounds after a fight erupted in a car park in Merrylands, in Sydney's west, just after 10:00pm (AEDT).
Earlier, in the evening two people in southern Sydney received cuts to their heads and several more were arrested following an incident involving about 30 people near Sutherland railway station.
Two people were also charged with resisting arrest and offensive conduct after a brawl erupted at Parramatta Park as the Triple J Hottest 100 event came to a close.
A total of 92 people were arrested and charged with 113 offences.