NSW has recorded 50 new locally-acquired Covid-19 cases on Saturday after 42,000 people came forward for testing.
Premier Gladys Berejiklian said "most concerningly" 26 of those cases were infectious while out in the community.
"When you know that there are 26 cases infectious in the community, the only conclusion we can draw is that things are going to get worse before they get better," she said on Saturday.
Of the new cases, 14 of these were household contacts, prompting Ms Berejiklian to ask people to stick to the rules to protect their loved ones.
"People are getting the virus and then spreading it to those closest to them," she said.
"If you truly love your parents, your sisters, your best friends, please stick to the rules."
On Friday, NSW recorded 44 new Covid-19 cases and the number of close contacts doubled in a single day from some 7000 to 14,000 people.
NSW has seen huge spikes in daily case number since Thursday when 38 new Covid-19 cases were recorded.
The surge in cases saw the premier announcing tougher restrictions on Friday and warning the lockdown could be extended beyond next week.
New restrictions for Greater Sydney
Sydneysiders woke up to their full day of tougher restrictions, which included:
Exercise in groups of two only - households are allowed to exercise together
Ten-kilometre limit for exercise
No carpooling with people from outside your household
Funerals limited to 10 people only from Sunday
One person from the home at a time is allowed to shop for essentials
Case numbers expected to 'bounce around'
"Our best case scenario is for people to do the right thing, to acknowledge how serious the situation is for us, and I'm always an optimistic person," Ms Berejiklian said.
"We can turn things around and we probably won't see the difference over the next few days. I do expect the numbers to be bouncing around and the situation to worsen before it gets better."
On Saturday, she once again implored people to follow the rules.
"Cutting corners, flouting the rules is going to prolong the lockdown, and that's the last thing any of us want to see," the premier said.
She stressed the importance of getting the number of people out in the community while infectious "as close to zero as possible".
"Now, that is the greatest indicator of what the situation is moving forward," Ms Berejiklian said.
"Unfortunately, the vast majority of people who have been infectious have chosen not to do the right thing in the last few days.
"Please tell us the truth at the beginning, you won't get in trouble. We just need you to tell us so we can make sure all of your close contacts, all the people we need to get to, we get to.
"Because when people withhold the truth or don't tell us what's happening, it just makes things last longer and that's the last thing we want."
Chief Health Officer Dr Kerry Chant said 19 people under the age of 55 are in hospital with Covid-19, eight of which are under the age of 35.
Across NSW, 47 people are currently in hospital with Covid-19.
A teenager is among the 16 people in the intensive care unit (ICU) along with one person aged in their 20s.
Woolworths, Coles added to exposure sites list
Several new exposure sites were identified across Sydney overnight and anyone in NSW with even the mildest cold-like symptoms is being asked to come forward for testing and isolate until a negative result is received.
Anyone who is considered a "close contact" must immediately get tested and isolate for 14 days, regardless of the result.
New close contact venues in NSW are:
Lab Bakery Cafe, Strathfield, Thursday, July 1 from 11.30am to 12.45pm
Direct Trade, Merrylands, Saturday, July 3 from 2.20pm to 2.50pm
Beacon Lighting, Home Central 9, Bankstown, Thursday, July 8 from 8am to 9.30am
309 Bus, Redfern to Beaconsfield from Redfern Station Regent Street Stand C to Botany Road at Epsom Road, Sunday, July 4 from 6.46pm to 6.51pm
Meanwhile casual contacts must immediately get tested and isolate until a negative result is received.
New casual contact venues in NSW include:
Barzura Coogee, Coogee, Saturday, July 3 from 9.30am to 9.35am
UTS Haberfield Rowers Club, Haberfield, Sunday, July 4 from 12.15pm to 12.45pm
Aldi, Quakers Hill, Sunday, July 4 from 1.15pm to 1.35pm
Big W Liverpool Westfield, Liverpool, Monday, July 5 from 1.10pm to 1.20pm
Michel's Patisserie Liverpool Westfield, Liverpool, Monday, July 5 from 1.20pm to 1.30pm
Aldi, Hoxton Park, Monday, July 5 from 3.30pm to 4pm
Ek'sentric Café Maroubra, Maroubra, Monday, July 5 from 9.30am to 9.40am
Georges Hall Pharmacy, Georges Hall, Monday, July 5 from 2pm to 2.30pm
My Local Café Maroubra, Maroubra, Tuesday, July 6 from 8.40am to 8.50am, Wednesday, July 7 from 8.45am to 8.55am and 12.30pm to 12.40pm
Coles Maroubra Junction, Maroubra, Tuesday, July 6 from 9.50am to 10.20am
KFC, Rockdale, Tuesday, July 6 from 10am to 4pm and Wednesday, July 7 from 10.30am to 4pm
Morning Glory Café Coogee Pavilion, Coogee, Wednesday, 7 July from 11.15am to 1.45pm
Woolworths, Mascot, Wednesday, July 7 from 2.30pm to 3pm
Aldi, Ashfield, Wednesday, July 7 from 1.15pm to 2pm
Woolworths Ashfield, Wednesday, July 7 from 1.45pm to 2.15pm
Anyone who has visited Ashfield Mall on Wednesday, July 7 between 1.15pm to 2.15pm is being asked to monitor for symptoms and get tested if they appear and isolate until a negative result is received.
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