The number of new COVID-19 cases in the Illawarra Shoalhaven has climbed again, with 28 more residents testing positive for the virus in 24 hours.
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They are among 804 new cases in NSW - 268 more than the previous day, and the highest daily increase since the lockdown ended in October.
Twenty of the new cases in the Illawarra Shoalhaven Local Health District are among Wollongong residents, five cases are in Shellharbour, and three are in Shoalhaven.
These include: six cases in the postcode of 2500; four in 2515; two each in 2518, 2519, 2526, 2528 and 2540; three each in 2530 and 2529; and one each in 2508 and 2541.
Kiama has recorded no new cases.
The sharp rise in NSW cases has been reported just one day before restrictions ease again, with the biggest change to be the opening of non-critical retail and dining in to unvaccinated people.
Dr Chris Degeling, from the University of Wollongong's Australian Centre for Health Engagement, Evidence and Values, said the community should expect to see numbers continue to rise, and with this, the potential for increased strain on the health system.
Hopefully many would be vaccinated people so there would not be such a large increase in hospitalisations and death, he said, but the vaccine did not offer complete protection from illness.
And with restrictions easing, Dr Degeling said there would likely be more cases among unvaccinated people, who were at greater risk of illness.
"Even a small percentage of a very large number of cases is still a large number," Dr Degeling said.
However, he said it was difficult to predict exactly what would happen.
More than 200 cases are in the Hunter New England Local Health District, where two popular nighttime venues in Newcastle have been listed as venues of concern.
A total of 85 cases of the Omicron variant of concern have been confirmed in NSW, but health authorities expect this number to rise in coming days as the results of genomic testing come in.
There are 168 COVID patients in hospital, with 21 people receiving intensive care, nine of whom are on ventilators.
NSW Health has reported another death, a woman in her 60s from Albury who died in hospital in Victoria.
She was not vaccinated.
The new cases were detected from 86,562 tests, up from 74,997 the previous day.
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