Close contacts in the early child care sector will no longer need to quarantine and will simply require a negative rapid test to return.
The new rules will align more closely with existing provisions in place for primary and secondary schools across the territory.
Staff and children identified as close contacts will be required to present a negative PCR or rapid test taken within the previous 48 hours to return to early childhood care.
Acting chief health officer Dr Vanessa Johnston made the announcement via a Facebook livestream on Wednesday morning.
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She said the government had previously taken a more conservative approach in child care settings because children aged zero to five were not yet eligible for vaccination.
"But what we have seen is not a significant number of cases in that group and also certainly not an uptick in disease in the age group," Dr Johnston said.