NSW premier Gladys Berejiklian has credited the hotel quarantine system for returned travellers with keeping the community safe during the COVID-19 crisis.
Ms Berejiklian on Monday said infection rates in returned travellers have been high, with up to four per cent testing positive to COVID-19.
"It's way too soon to think about changing quarantine," she told reporters.
"That's something we've done which I believe has kept the community safe and that should continue in the foreseeable future because the risk is there."
The premier also flagged she was open to using the hotel quarantine system to get international students back into NSW universities, but insisted there would be no shortening of the 14-day quarantine.
She reiterated her concerns about a potential second wave of infections and an increase in community transmission cases as restrictions are eased.
"The virus is scarily contagious; it's deadly," she said.
"Whilst we are doing really well, incredibly well, it won't last if people relax and if people don't stick to the rules."
In the latest easing of COVID-19 restrictions in NSW, the 50-person limit on indoor venues will be scrapped from July 1.
Pubs and restaurants are among venues which will instead be guided by the 'one person per four square metres' rule, with the same change also applying to funeral attendees and venues.
Outdoor cultural and sporting venues with seating of up to 40,000 will be allowed to hold 25 per cent of their capacity from July 1.
Meanwhile, health authorities continue to probe how a teacher at Laguna Street Public School in southern Sydney became infected with COVID-19.
All students at the primary school have been deemed close contacts and have been told to self-isolate. The school will stop on-site learning until June 24.
The teacher was one of nine new virus cases reported in NSW on Sunday, while three new cases were reported on Monday from 7200 tests.
Of the three new cases, two are returned travellers in hotel quarantine and one is an Illawarra man in his 20s for whom the source of infection is unknown.
To date, the state has recorded 3131 cases of COVID-19.
NSW Health on Monday declared the COVID-19 outbreak at Newmarch House over.
A total of 37 residents and 34 staff tested positive at the Anglicare-run facility in western Sydney while 19 residents died.
"This extraordinary challenge also highlighted the compassion and dedication of our staff, some of whom had to self-isolate and others who continued to work in difficult and unprecedented circumstances to maintain the care of all our residents," an Anglicare spokesman said in a statement.
"While the outbreak is now over, the virus remains active within the community. Anglicare must remain vigilant in screening and infection control at Newmarch House, and across all our other aged care homes."