New South Wales Premier Nathan Rees says the Tattoo injected $15 million into the state's economy and attracted 22,000 visitors the last time it was held in Sydney in 2005.
"We've got the replica castle in storage at Redfern. I understand other cities were keen to use that and we said 'no'," he said.
"[It's] a terrific shot in the arm for Sydney."
The performance, titled The Edinburgh Military Tattoo - Celebrating 60 Years of Valour, Mateship and Glory, will focus on the relationship between the Australian and British defence forces.
Scotland's Tattoo is held during the Edinburgh Festival each August.
Source: www.abc.net.au/news/stories/2009/03/03/2505934.htm?section=australia