NSW has recorded another 199 confirmed cases of COVID-19.
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More than 104,000 tests were carried out across the state yesterday, and comes the day after a record 117,000 swabs on Sunday.
Fifty of the new cases announced by premier Gladys Berejiklian this morning were infectious in the community.
"Again, workplaces and households are the main places where the virus is transmitting", Ms Berejiklian said, urging people to assume they will come into contact with the virus if they leave the house.
Transmission continues to centre around households and workplaces in Sydney.
"We don't know if it's peaked or if it's going to get worse," Ms Berejiklian said.
Ms Berejiklian said the government had been exploring incentives "for some time", and had wanted to make clear to Sydneysiders what life beyond lockdown could look like if vaccination and case numbers co-operated by the August 28 deadline.
In other news:
"That testing rate of 104,526 is very pleasing, a great community response," chief health officer Kerry Chant said.
However, 53 people with the virus are in ICU, she said. Of those in ICU, 43 are not vaccinated.
Ms Berejiklian declared the state is aiming to get to six million vaccinations by the end of August, with 3.9 million already delivered.
Victoria yesterday tightened the border bubble with NSW yet again, with just six reasons for residents in those regions to move between the states.
They include medical care, compassionate purposes, work, education, playing sport or getting vaccinated, and apply to those living on both sides of the border.
NSW cross-border residents have previously been able to travel into Victoria including Melbourne for any reason.
Queensland's snap three-day lockdown, which was due to end tonight, has also been extended by five days as police fear the state is struggling because people are deliverately disobeying lockdown orders.
The outbreak in the Sunshine State was at 31 yesterday, with at least two cases of the Delta strain expected to be announced today - high school students and dozens of virus exposure sites across Brisbane.
More on the pandemic:
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