NSW has broken another national record after more than 3,000 people were diagnosed with COVID-19 in a single day.
There were 3,057 cases recorded in the 24 hours until 8pm on Monday from 136,972 tests.
That's 556 more than the previous day's 2,501 cases.
There are 284 COVID-19 patients in hospital - up from 261 - and 39 people are in ICU - up from 33 and 11 are ventilated.
Two people died from the virus including a vaccinated man in his 80s from Sydney's south who had underlying health conditions.
An unvaccinated woman in her 70s from the Central West with underlying health conditions died at the Gosling Creek Aged Care facility.
Newcastle remains the epicentre of the Omicron outbreak, with 5,169 active cases now in the Hunter region, and 820 new cases.
With just days until Christmas, COVID-19 testing sites are overwhelmed with people anxious to get the all-clear to be able to safely attend yuletide celebrations.
Premier Dominic Perrottet is resisting widespread calls to revert to mask mandates indoors but national cabinet is meeting on Wednesday to discuss the latest COVID-19 crisis, amid speculation masks rules will be reimposed and booster shots expedited.
Meanwhile, NSW Opposition Leader Chris Minns is isolating at home after one of his staffers contracted the virus.
He criticised Mr Perrottet's refusal to heed the calls from experts and reintroduce mask mandates indoors.
He says it is putting everyone's Christmas celebrations in jeopardy.
"The main thing here is that Christmas isn't ruined and we don't go back into lockdown," he told Sydney radio 2GB.
"We've gotten used to wearing masks, there's strong evidence they work - preventing the disease from spreading more than it otherwise would.
The same rules now apply to the vaccinated and unvaccinated in NSW, as COVID-19 case numbers rise significantly. Source: AAP
RACP president John Wilson says he is wary of the increasing COVID-19 case numbers in NSW.
"If not checked a surge in cases will further burden our already exhausted health systems due to an overwhelming rise in hospitalisations.
"The relaxation of restrictions in some jurisdictions, especially those associated with mask-wearing, QR code check-ins and large gatherings, can have dire consequences," he said.
The NSW vaccination rate remains the same with 94.9 per cent of people aged 16 and older having had one dose, while 93.4 per cent of people are fully jabbed.
Some 81.4 per cent of people aged 12-15 have had one dose of a vaccine and 78.1 per cent have had both doses.
From Tuesday fully vaccinated overseas travellers entering NSW will no longer have to isolate for 72 hours.
Overseas arrivals to Sydney will have to get a COVID-19 PCR test within 24 hours and isolate at home until they return a negative result.
COVID-19 cases grow in Victoria
Victoria reported 1,245 new COVID-19 cases and six deaths on Tuesday, as testing sites continue to be inundated in the lead up to Christmas.
Testers processed 66,888 results in the 24 hours to Tuesday morning, while 14,483 people were vaccinated in state-run hubs.
At least 15 testing sites were temporarily closed at 9am after reaching capacity, including the Bourke Street walk-in and Albert Park drive-through.
On Monday night, Melbourne Lord Mayor Sally Capp announced a testing site would open at Town Hall from 10am on Tuesday to January 24 in response to demand.
Mr Merlino said the state had also recently added sites in Dandenong, Berwick and Frankston, and extended opening hours after anticipating increased demand.
"I know there have been some sites where the queues are very long. I am asking for people's patience - I know this has been a very difficult time and it's quite an inconvenience," he said.
"But for the most part, across all of our 260 sites, we're getting through (tests) in 40 minutes on average, and we have expanded sites where we've got particular gaps in the southeast."
The surging demand, he said, has been fuelled by Victorians needing a negative test result to travel interstate to reunite with friends and family over Christmas.
Queensland records 86 cases as quarantine rules eased
The quarantine period has been halved for fully vaccinated close contacts of COVID-19 cases in Queensland, as the state records 86 new infections.
The mandatory quarantine period will move from 14 to seven days from Wednesday, in a move Deputy Premier Steven Miles hopes will help businesses handle the festive trade.
"That will greatly reduce the impact on individuals as well as on businesses when they have a COVID positive case," he said on Tuesday.
Those who qualify for the seven-day process must get tested on day zero and day five of their quarantine period, and continue monitoring for symptoms.
There are no quarantine changes for those who are unvaccinated.
As daily cases approach triple figures, Chief Health Officer John Gerrard said the trend was following a pattern of roughly doubling every 48 hours.
A total of 75 of the state's 269 active cases are being treated in hospital, with one person in intensive care who was vaccinated about six months ago.
The majority of cases are experiencing "minimal symptoms" and the woman in intensive care has been admitted "mainly" because of other medical conditions, Dr Gerrard said.
"I've spoken with the doctors looking after this patient, she is only moderately unwell," he said.
Of the new cases reported on Tuesday, 12 are contacts of known cases, six are related to interstate travel and 67 are under investigation. One was acquired overseas.
"We're seeing about two cases of Omicron diagnosed for every one case of Delta," Dr Gerrard said.
"Omicron has become the dominant virus here in Queensland."
South Australia reported 154 new infections, Queensland 86, the ACT 16, the Northern Territory 14 and Tasmania four.
Contact tracing is underway in Western Australia after two people tested positive to COVID-19 after arriving on a flight from Brisbane.
The duo, aged in their 30s, arrived on Sunday night on flight VA470, hours before WA's reintroduced hard border to Queensland came into effect.
WA Health on Tuesday said the pair were in self-quarantine and four of their close household contacts had tested negative. A fifth person was awaiting a test result.
