NSW residents have been implored to remain vigilant as health authorities stress the increased mobility of people during the upcoming school holidays poses a high risk of COVID-19 spreading.
Chief Health Officer Kerry Chant says authorities are concerned about a drop in testing rates - with 8835 tests conducted in the latest 24-hour reporting period, down from 9316 the previous day.
She wants daily testing back above 20,000 ahead of the school holidays which start on September 26.
"It is critical before we become more active and mobile ahead of the school holidays that we drive down those cases of community acquisition to the lowest possible level and if possible achieve no community transmission," she told reporters on Tuesday.
"It is important that we don't have complacency."
This was reiterated by NSW Premier Gladys Berejiklian who implored people to be vigilant and get tested if they had the mildest symptoms.
She noted people will be travelling across the state during the school holidays, and with that comes an increased risk of COVID-19 spreading.
"We know from the data and our experience with COVID that mobility, people moving around, different communities mixing is the highest risk to the spread of the virus," she told reporters.
NSW recorded seven new COVID-19 cases in the 24 hours to 8pm on Monday.
This includes four in hotel quarantine - with three overseas travellers and one returned traveller from Victoria - and two linked to a known cluster while another is still under investigation.
All passengers who were on the same flight as the infected NSW resident returning from Victoria in Sydney are in hotel quarantine.
Two of the new cases are linked to the Concord Hospital and Liverpool Hospital cluster.
NSW Health also said an additional case of a student at Blue Mountains Grammar school had been confirmed. The case will be included in Wednesday's numbers.
The school is closed for cleaning, while contact tracing is underway.
Meanwhile, a possible new COVID-19 case at the Anglicare-run Newmarch House in western Sydney has been cleared.
Anglicare initially said it was investigating a possible case after the elderly resident tested positive, but it was later thought to be a false-positive after a negative result.
However, further pathological data from NSW Health confirmed the swabs taken from the resident showed signs of the previous infection, and the person was no longer infectious.
"We are all relieved and sincerely appreciate the support received from NSW Health," Anglicare said in a statement on Tuesday.
Nineteen Newmarch House residents died from COVID-19 when it swept through the facility, infecting more than 70 staff and residents earlier this year.
The home has been free of the infection for more than two months.
A report released last month found staff shortages and inadequate protective gear had exacerbated the outbreak.