The number of COVID-19 cases recorded in the Illawarra has plummeted, with just over 800 positive tests on the official record for the first week of the year.
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This is significantly below recent weeks, and nearly 2000 fewer cases than the mid-December high of 2728.
NSW Health said case numbers across the state had dropped by 33 per cent compared to the previous week.
"Key indicators for transmission, including PCR positivity, hospital admissions and admissions from emergency departments are declining," the report said.
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"There were 15,364 people diagnosed with COVID-19 this week, a decrease of 33% since the previous week. PCR testing for COVID-19 has decreased by 11% compared to the previous week.
"The seven-day rolling average of daily hospital admissions decreased to an average of 84 admissions by the end of this week, compared with 125 admissions at the end of the previous week."
"There were 588 people with COVID-19 admitted to hospital and 59 people admitted to ICU this week."
Due to the state releasing a fortnightly, instead of weekly report over the holiday period, it is not possible to directly compare the new figures for the Illawarra Shoalhaven with the weeks ending December 24 and December 31.
However, based on the average of the fortnightly figures, Illawarra Shoalhaven have dropped by more than 1000 cases - or nearly 60 per cent.
The report also shows that PCR testing rates for the Illawarra Shoalhaven were less than half that of mid December, and the week before Christmas - but that they are among the highest rates per 100,000 compared to other health regions.
Local hospitalisation numbers have also dropped, returning to similar levels to mid-November, and deaths were around the average for the past six months, with six people in the region dying.
Aged care facilities across the country continue to deal with outbreaks, with 233 outbreaks across NSW according to the federal government's aged care report for the week ending January 5.
COVID-19 was recorded as the cause of death in 5.8 per cent of all deaths in permanent residents in aged care facilities during that week, the report said.
In the Illawarra, seven facilities were listed as having an active outbreak with the pargest at Marco Polo in Woonona, where 46 residents and 24 staff are infected.
Marco Polo in Unanderra was the only local facility to record any recent deaths from the virus, and there were 24 residents and 17 staff with COVID-19.
Illawarra Diggers has 37 residents and 7 staff sick, and IRT Woonona had 15 residents and 13 staff with COVID-19/
There were smaller outbreaks at Illawarra Multi-Cultural Village Hostel, IRT William Beach Gardens and United Boronia Gerringong.