The record testing was revealed by premier Gladys Berejiklian on Thursday, with 345 new cases emerging across the state and two people succumbing to the virus in Sydney hospitals.

It comes after 344 cases, two deaths and more regional lockdowns were announced on Wednesday.

Eight western NSW local government areas were plunged into their own lockdown on Wednesday evening, just hours after one was implemented in Dubbo, when it emerged a COVID-case was detected in Walgett.

A 27-year-old man had been released from Bathurst Correctional Centre, where he was tested on Saturday, on Monday, and returned a positive test on Wednesday. He has since been living in Walgett.

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Stay-at-home orders were implemented for the Bogan, Bourke, Brewarrina, Coonamble, Gilgandra, Narromine, Walgett and Warren local government areas at 7pm.

A positive case has also been detected in Canberra overnight, and the Australian Capital Territory will go into lockdown at 5pm.

Three more cases were detected and a primary school in Dubbo has closed on Thursday morning, after a student tested positive for COVID-19. It's the third school in the region to close in two days.

The Department of Education confirmed on Thursday morning that all staff and students were required to self-isolate.

The NSW Hunter, Dubbo, Byron Bay, Armidale and Tamworth areas are also enduring snap lockdowns, and the federal government on Wednesday added Tamworth and Armidale to the areas eligible for COVID disaster payments.

Three more Sydney local government areas - Bayside, Strathfield and Burwood - will face harsher restrictions akin to those in west and southwest Sydney, bringing the number of LGAs under those conditions to 12.

Contact tracing is underway for the Walgett case, who is believed to have been in Dubbo and Bathurst while infectious.

"The person was tested on 7 August, returning a positive result today. They are considered to have potentially been infectious from 5 August," a spokesperson for Western NSW Health District said.

Armidale, Tamworth and Northern Rivers had no new cases, however Newcastle's increased cases has seen the lockdown extended by at least another week.

"Unfortunately the same isn't the case for Hunter and New England," Ms Berejiklian said, citing NSW Health advice.

"Given what the area's experience I think the community would understand why [the lockdown extension] is the case."

Interstate, the Brisbane cluster has increased by 10 cases and Victoria announced another 21 on Thursday morning.

Queensland Premier Annastacia Palaszczuk on Thursday told reporters the NSW-Queensland border could be tightened further and no one should be crossing the border for the time being.

Calls for lockdown loopholes to tighten have emerged after a man travelled from Sydney to Byron Bay, allegedly to inspect property.

He and his children, who accompanied him on the trip, have since tested positive for COVID-19 and the NSW Northern Rivers region is now in lockdown.

The Rose Bay man has been charged with breaching public health orders and will face court.

Some Wagga real estate agents say the loophole that lists property inspections as an exemption to stay-at-home orders is leaving the region exposed, with some going a step further and not offering inspections to prospective buyers from hotspots.

"I'm so appalled at that guy's behaviour and that could easily happen here," said Fitzpatricks' Paul Gooden.

"Wagga could be Byron Bay, just by a different name."

The city's COVID frontline workers are facing challenges of a different nature, with Wagga vaccination hub workers being abused as they go about their work.

Dr Ayman Shenouda, who runs the Wagga vaccination hub out of Glenrock Country Practice, said that the number of angry phone calls that staff are receiving from the public is on the rise.

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