A new proposal allowing Aboriginal and Torres Strait Islander people to busk without a permit in Sydney’s CBD has been welcomed by indigenous performers.

Under the City of Sydney policy – which is open for feedback until the end of October – indigenous people won’t need a busking permit to practice their culture in public spaces managed by the city.

The change would be an important step towards showcasing Australia’s indigenous culture to the world, according to street performer Russell Dawson.

“People who come to Australia need to see some indigenous culture,” he told AAP.

“To allow indigenous people to actually go about and promote their culture – that’s a good thing.”

Dawson has worked as a street performer in Sydney with Koomurri Aboriginal Incursions for more than 30 years.

He believes the change would also be a “stepping stone for bridging the gap”.

“I think it’s a good approach for reconciliation in Australia,” he said.

“It’s all about coming together and celebrating Aboriginal culture.”

Lord Mayor Clover Moore says the proposed policy has been developed with a range of stakeholders.

“Our new policy recognises the right of Aboriginal and Torres Strait Islander people to experience and share their cultural heritage in the public domain,” she said in a statement on Tuesday.