Medical-grade masks also no longer need to be worn anywhere except for hospitals and nursing homes.
FFP2 mask rules for shops and restaurants will be relaxed.
While FFP2 masks will still be required in hospitals and nursing homes, they will be dropped in all other areas where the 3G rule applies.
Non-medical grade mouth protection, i.e. cotton masks or scarves, will again be sufficient in indoor areas such as bars, restaurants and in public transport. The government indicated it will make a concrete announcement at a later date.
No masks of any kind will be required in outdoor areas, regardless of the size of the event.
“The situation is much better than expected,” Chancellor Sebastian Kurz told reporters, although he cautioned that people should get the vaccine and not become “overconfident” until they are immunised.
Crowd numbers will no longer be restricted at events, where people do not need to keep their distance or wear face coverings anymore.
A midnight curfew will also be lifted from July 1, allowing for nightlife to return.
The only rule that remains is that those who attend an event, go to a nightclub or eat in a restaurant must show proof of either having received at least one vaccination shot more than three weeks ago, recovered from coronavirus or tested negative.
Nightclubs closed in March last year as the pandemic spread through Europe and were among the few venues that mostly stayed shut last summer during a lull in new cases.
The Alpine EU member of almost nine million people has reported more than 649,000 cases to date with some 10,670 deaths.
Almost half of the population has already received at least one shot, while a quarter is fully vaccinated.