The NSW government wants to ease restrictions after the state again recorded zero local COVID-19 cases, but says testing numbers need to rise first.
Some 16,070 people were tested in the 24 hours to 8pm on Thursday. Only two cases were identified, both overseas travellers in hotel quarantine.
It is the second consecutive day with no locally acquired coronavirus cases.
Premier Gladys Berejiklian said on Friday that the government is considering easing restrictions in Greater Sydney, but that testing rates need to rise first.
Just over 20,000 people were tested in the previous 24-hour reporting window.
The government wants to see daily numbers over 25,000.
"I want to stress to the community that relief is on its way so long as we maintain low or zero numbers of cases on a daily basis, and also so long as we get those testing rates high," Ms Berejiklian said.
Without increased testing, the government cannot have confidence there were no undetected chains of transmission "bubbling away" in the community, Ms Berejiklian said.
Possible changes include allowing children under 12 into homes without counting them in visitor numbers, easing restrictions at weddings and easing mask use rules.
The premier said she hopes to announce eased restrictions within a week.
Chief Health Officer Dr Kerry Chant earlier this week warned it would take at least another three weeks before authorities could be certain the Berala and northern beaches clusters are fully squashed.
As the rollout of a vaccine looms closer, the NSW government is considering a data-sharing partnership with the federal government that would help residents prove they have been immunised.
Ms Berejiklian said the Service NSW phone app could show a tick when a person is vaccinated.
"There is a positive way that we can incentivise people to take a vaccine, and that is the path that I would like us to take," she said when asked about penalties for people who lie about being immunised.
State and federal governments will also soon discuss issues like whether employers can punish staff who refuse the vaccine, but Ms Berejiklian flagged she would adopt a laissez-faire approach.
"Employers and hospitality venues may make certain decisions about who they have in their workplace or who they have in their venue and that is a matter for them to an extent," Ms Berejiklian said.
Meanwhile, NSW Health has issued an alert for anyone who has been at the Hotel Grand Chancellor in Brisbane, which is linked to six cases of the UK strain.
All 10 people in NSW who stayed in the hotel have been contacted and are self-isolating.