2012 is the year of the dragon and the parade featured a lot of dragons.
The parade, though mainly Chinese, also featured some other Asian countries including Korea.
This year the special delegation had come from Chengdu, the capital of Sichuan Province.
Children were wearing the paper dragon masks that had been handed out. What looked like giant, red, inflatable chop sticks were also in abundance.
The crowds were several people thick along most of the route of the parade.
Those taking part in the parade included people dressed as pandas, dancers, bands and a martial arts group.
Sources and further information
City of Sydney Chinese New Year website
Australian Chinese New Year Celebrations website