Where does Sydney love to celebrate the festive season? Is it somewhere in the city? In the suburbs? Does the event feature that man in the red suit? Is audience participation required? For example, as in a fun run event - or can audience participation be rather passive? Are carols sung? Is this a kid friendly event? If a kid friendly event, can the kids enjoy free activities such as face painting and using the jumping castles?
The Carols in the Domain remains as a traditional annual Christmas event. A fairly passive Christmas event in Sydney, yet the audience is encouraged to be a little more active by singing the carols. A great atmosphere, and the kids carnival starts about eight hours before the carols themselves start. Also, the Santa Run is great. Love the festivities that Darling Harbour put on for Christmas as well.
For me, just driving around Sydney at night, looking at the houses and buildings with Christmas lights on them is perfect. I put a Christmas cd on in the car, and really feel festive. Best of all, you get to choose who you have with you and it's free.