School formals and graduations were given the go-ahead last month but under the previous coronavirus rules only 100 outside guests could attend an event, which had forced many schools to consider live-streaming ceremonies.

Students are not counted in capacity limits for school events, which can now welcome up to 200 outside guests to celebrate the milestone as long as the venue maintains the four-square-meters per-person rule.

For large indoor seated venues, ticketed events can have up to 50 per cent capacity, to a maximum of 1000 people.

This means a graduation ceremony held off-campus in a large venue could accommodate up to 1000 people.

It came as welcome news to parents, ACT Council of Parents and Citizens Association policy officer Veronica Elliott said.

"Graduation and end of year events are important for families because they're really big milestones that can be celebrated together," she said.

"We're really excited to see how these events unfold. We know we have some really creative people in school communities that will find a way to make the end-of-year events as fun and as enjoyable as they can be."

She said parents would eagerly await any further changes to COVID-19 restrictions as graduation inched closer.

"We're really keen to see how things continue to unfold and look forward to any further variations that might come along that provide parents a greater opportunity to participate," Ms Elliott said.

The ACT Education Directorate said the city's largest schools may still need to limit guests per student, hold multiple ceremonies or go digital.

"Some schools may elect to hold ceremonies at larger offsite seated venues, which are now able to have up to 50 per cent of their capacity to a maximum of 1000 people provided a COVID Safe Plan is in place," a statement from the directorate read.

"Live streaming, filming, and photography will also be considered by schools to support parent and family engagement in graduations.

"Most ACT public school formals will also need to be held on site. Schools unable to cater for their student cohort onsite will generally consider another school site in the first instance."

The ACT government announced last month dancing would also be allowed at formals for students, without physical distancing.

But if two schools wanted to hold an event together, they would be required to apply for an exemption.

Despite the changes, the Education Directorate said managing attendance numbers and hygiene measures remained important.

"While the number of parents or carers able to attend end of year events may have increased, schools will still need to take added COVID precautions. This means upholding physical distancing for adults and having good hygiene measures in place," the directorate said.