New South Wales has recorded 344 new community cases of COVID-19 and a further two deaths, including a man in his 30s.
At least 65 of the overnight cases were in the community for all or most of their infectious period.
Officials say the man in his 30s who died overnight had been suffering from other medical issues.
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An unvaccinated man in his 90s also died overnight.
It comes as Dubbo becomes the latest area of regional New South Wales to be sent into lockdown after two cases were recorded there.
The lockdown will come into effect from 1pm.
There were no new cases in Armidale, Tamworth or the Northern Rivers however, the Hunter region recorded 14 new cases.
New South Wales Premier Gladys Berejiklian indicated the lockdown in that area would likely be extended as a result.
The Premier concedes the number of cases is likely to remain high.
“I want to stress, over the last two days we have seen a surge in the number of cases and we expect that to continue,” Ms Berejiklian said.
“Positively, we are starting to see a declining number of cases and a Fairfield local government and also Canterbury-Bankstown.
“While the number of cases, especially in Canterbury-Bankstown, are still high, we are starting to see a decline, so that intensive work we have been doing is starting to have effect, and we are asking the community to keep going, stick to the rules.”
Officials have warned that cases were starting to rise in some neighbouring LGAs including Bayside, Strathfield and Inner West.
The Premier is continuing to urge people to come forward to get vaccinated, arguing it is the path to freedom.
“If we keep the vaccination rate up we will get to 6 million jabs by the end of August which will give us an opportunity to think about what additional freedoms we can give people in September and October.
“Looking forward to that double dose of 70% vaccination, because that is when, according to the best advice we have in the Doherty report, we can start to live life freely and not have the strong restrictions we have in place today.”