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NSW recorded 1485 cases of COVID-19 in the 24 hours to 8pm on Saturday.
Two COVID cases are under investigation in Balranald in the far western Riverina, which falls under the Far West Local Health District.
No new cases or sewage detections have been recorded in the Murrumbidgee Local Health District.
Three deaths were recorded in the state within the 24 hours. One was a woman in her 50s who had received one dose of a COVID vaccine and had no know comorbidities.
The second death was a woman in her 70s from south-western Sydney who was not vaccinated and had significant comorbidities and the third was a man in his 70s from south-western Sydney who was not vaccinated and also had comorbidities.
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Premier Gladys Berejiklian said the peak number of cases is still to come, and urged everyone to continue to get vaccinated.
"All the modelling indicates to us at the peak is likely to be here in the next week or two and the peak in hospitalisation and intensive care is likely to be with us in October," Ms Berejiklian said.
115,495 tests, 1030 hospitalisations
Deputy Chief Health Officer Jeremy McAnulty said 115,495 tests had been recorded in the 24 hours to 8pm on Saturday with hospitalisations currently over 1000.
"There are currently 1030 people admitted to hospital with 175 in intensive care," Dr McAnulty said. "Seventy-two of those require ventilation."
Dr McAnulty urged younger residents to get vaccinated, saying two-thirds of cases recorded are in people under the age of 40.
"It is important to note that we are seeing cases among all ages, but two-thirds of our cases have been people under 40," Dr McAnulty said.
"The message about coming forward for testing but also getting vaccinated, taking the advantage of the multiple vaccination hubs and through your GP or pharmacy to get vaccinated, it is so important."
Dr McAnulty confirmed three children are among the cases in ICU.
The Premier also confirmed a decision will be made on lifting lockdown restrictions for some of the regions this week as the regional lockdown end date of September 10 approaches.
Ms Berejiklian said the importance of consistency across the state will play a part in their decision making.
"We need to check the health advice and in some parts of regional NSW, for example, we will be making a decision this week as to what happens to the regions post 10th September because the lockdown technically goes until Friday," she said.
"These are considerations we do on a daily basis but the two principles that guide us [are] not to burden citizens any more than we need to, and secondly where possible to have the rules consistent across the state as much as possible."
Freedoms for vaccinated promised at 80 per cent
The Premier said that while cases are expected to continue to rise in coming weeks, the state is tracking well to its target vaccination rates and she commended the state for reaching 40 per cent full vaccination rates, and 73 per cent single dose coverage.
"We should remember that while we are anticipating the peak of cases to occur in the next couple of weeks, we can foreshadow that once we hit the 70 per cent double dose that life will [be] much better in NSW," she said.
"Those of us that are vaccinated fully will be able to participate in things we have missed out on for a long time."
Ms Berejiklian confirmed that when the state reaches the target vaccination rates of 70 and 80 per cent, new freedoms should include at-home quarantine allowances for overseas arrivals.
"There is a range of things we will be transitioning from when we hit 70 per cent double dose and the current quarantine system has reached its use-by date," Ms Berejiklian said.
"When Australians come back home fully vaccinated with a credible vaccine, it would make sense that they could quarantine at home and we are already considering when we do that and the transition will start in earnest when we hit 70 per cent double dose.
"The planning has already started, to see what life was like for Aussies coming home when they are fully vaccinated. We still need some form of quarantine, whether it is in the future for international students, skilled labour, but as far as Australians are concerned, if you are fully vaccinated with a credible vaccine, you should be allowed to quarantine at home and that is a transition we will be making."
She also confirmed that certain freedoms will only be available to those who are fully vaccinated against COVID-19.
"At 80% there will be things you can't do unless you are fully vaccinated," Ms Berejiklian said.
"It comes down to choice. If you don't want to be fully vaccinated, that is your choice but you won't be able to participate in things."
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