SYDNEY - RECORD crowds of 1.5 million were expected to kick off global New Year celebration on Wednesday with a fireworks extravaganza over Sydney's iconic harbour and Opera House.

Never-before-seen lightning, thunder and rain effects were to top the multimillion dollar pyrotechnics show, which traditionally centres on the city's world-famous Harbour Bridge.

'It's probably 30 per cent bigger on the bridge alone than what it's been in previous years,' said fireworks director Fortunato Foti.

'Personally, I don't think you can have too many fireworks. The more the better.'

Sydney is the first major city in the world to see in the New Year, with a record 1.5 million people expected to ring in midnight on the waterfront at 1300 GMT (9pm Singapore time).

For the first time the revelry will be carbon-neutral, with the city's mayor promising to audit and offset emissions from the event.

Organisers promised the largest display ever, with 5,000 kilogrammes of shells, comets and individual effects to dazzle spectators on what was forecast to be a perfect summer's evening.

With almost double the bang of last year, the show will cost an estimated five million dollars (S$4.94 million).

Australians in the southern city of Melbourne will mark midnight with fireworks over the Yarra River.

The nation's largest single New Year event will be held at the city's Telstra Dome stadium, where up to 40,000 people are expected to dance their way into 2009. -- AFP