Reams of flowers, photographs and handwritten messages have been removed from outside Bondi Pavilion after a huge, makeshift memorial was established to honour victims of the December 14 massacre.
Fifteen people were killed and dozens more seriously injured when two Islamic State-inspired gunmen opened fire on a Hanukkah celebration.
Waverley Council Mayor Will Nemesh said it was understandable people had stayed away from the famous beach since the attack, but now was the time to return and support local traders.
"I have heard so many stories over the past week of businesses that swung into action amid the chaos on that night, sheltering patrons and helping those fleeing the shooting," he said on Tuesday.
"Those selfless acts of kindness should be celebrated and there is no better way to show your appreciation than with a bit of spending."
Police remain on high alert for anti-Semitic or other hate crimes following the attack, Australia's deadliest since 1996's Port Arthur massacre.
A 26-year-old woman was arrested on Monday by officers designated to protect the Jewish community after she allegedly made an offensive phone call to a business in Sydney's eastern suburbs.
She was charged with using a carriage service to menace, harass or offend a day after a man was accused of posting a violent call to action on social media targeting Muslims.
Meanwhile, the surviving gunman, Naveed Akram, spent his first night behind bars on Monday after being released from hospital.
The full case against the 24-year-old was revealed in court documents that highlighted how he and his father Sajid, who was killed during the attack, planned and perpetrated the massacre.
After parking near a footbridge on Campbell Parade, the men allegedly tossed three pipe bombs filled with steel ball bearings and a "tennis ball bomb" into the Hanukkah celebration at Archer Park before opening fire.
Footage recorded in late October showed each Akram training with long-arm guns and "moving in a tactical manner" in a countryside location, which police suspect to be in NSW.
Further vision from security cameras at Bondi Beach appeared to show the Akrams scoping out the area about 48 hours before their attack.
After being shot by police, the younger Akram was discharged from a northern Sydney hospital and transferred to an undisclosed prison on Monday.
He will be held there ahead of his next court mention in April.
Twelve people were still in hospital on Monday night, including three in critical but stable conditions.
Anthony Albanese has apologised to the Jewish community for the atrocity happening under his watch while outlining legislation to tackle hate speech and beef up laws to cancel visas of non-citizens who preach hate.
He has resisted calling a national royal commission while backing a state-based inquiry and launching a more limited review into federal intelligence and law enforcement agencies.
The federal opposition continues to hold the prime minister's toes to the fire, releasing its own terms of reference for a federal inquiry.
Mr Albanese rubbished the coalition's claim a royal commission could report back within the space of six months, when they typically take a number of years.
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